Now we’ve looked at techniques to help you save on your energy, through the installation of Smart Meters, AMR and regularly maintaining your premises. We’ll start to focus on a few innovative startup funding methods for smaller businesses to ensure you’re off to a sustainable start.
Today our Accounts team have taken over our blog to help small business owners and startups to creatively fund their venture. We know that finding the capital to fund your business can be demotivating, difficult and often deteriorating to your ambitions. Especially if it’s not going your way. For first time entrepreneurs — even the most experienced business leaders find it troubling. So, you’re never alone.
Furthermore, searching for a specific high profile investor isn’t always the best option. Particularly for first timers. Don’t get too excited and carried away with the excess 000s. Be realistic, most investors hold your experience as a priority, and if they’re in love with your idea they’ll want a higher proportion of the profits.
Make sure you leave room for your own interests. Outsiders aren’t always needed — control your own startup funding.
8 Creative startup funding ideas
Trade your services for freebies
There are a number of profit denting costs when you’re looking for startup funding. With rent being one of them. Therefore, think like an entrepreneur, offer something else in return, provide your professional services as an alternative to rent.
Ask customers to pay in advance
Just signed your first client. As you’re opening up, request a percentage of your payments upfront. Adding further security, especially when covering those extra running costs.
Join a supporting organisation
There are a number of supporting organisations to help startups get their foot in the door, network and gather funding and supporting materials to pave the road to success. Joining the Federation of Small Businesses (FSB) provides startups with advice on everything from funding to government lobbying. There membership packages offer a wide range of support for the complex areas of tax, legal & human resources.
Start a crowdfunding campaign
Set up a Kickstarter account. Look for investment, whilst offering something back to your startup funding community. What we mean by this. For new market entries, offer an exclusive to the first 50 people who invest in your idea, whilst changing the incentive as more crowdfunders invest their interest. Keep a continuous cash flow.
Stick to your friends & family
If you’d rather keep it personal, keep close relationships with your family and friends. Offer a percentage of your business and obtain a Director’s loan. The main benefit of receiving family support is that they’ll be no additional bank fees or strict timescales to payback.
Try Angel investors
A slightly different approach includes, involving angel investors into your startup plan. They will provide supplementary experience and hard cash in return for a well thought out business plan, fruitful opportunities and a transparent valuation.
If you’re short on money, but don’t have the resources or time to source new investment opportunities. Another option could be to simply bootstrap and run your venture on a shoestring for a while. For instance, consider working from home and if you’re running a mail order company, consider asking suppliers to dropship and cutback on the premise costs whilst you’re business is picking up.
Network. Network. Network.
Most importantly. Make sure you’re meeting the right people. “Associate yourself with people of good quality, for it’s better to be alone than in bad company” (Booker T Washington). Attend seminars, exhibitions and liaise with others on social media, put yourself out there, research and keep up to date with the latest industry trends.
Crown Gas & Power are a gas supplier to the commercial world. We currently do not supply electricity. This post is based on research to inform and provide an opinion on small business & SME advice. Please consider researching our recommendations thoroughly and ensure you’ve fully understood the benefits to you, before making any changes.
If you’d like any information about Crown Gas & Power’s commercial gas supply contracts or Site Works services, please don’t hesitate to get in touch with our team on 0161 762 7744.