Got a great idea for a new technology business? Perhaps you have thoughts of taking that idea from your bedroom all the way up into a corporate boardroom? If so, you’re going to have to open the purse strings and put some money into it.
No business has a hope of achieving any kind of growth without funding, and one of the things you will need to do early on is to come up with some solid ideas of where to find that level of investment. With this in mind, let’s take a look at some of the many options available to you.
Although a growing a business requires money, it’s possible to start one with little funding at all. Sketching out a business plan, plotting your ideas, and even setting up a website will only cost you time if you put enough into it. At this stage, do whatever you can with as little money as possible – just to get yourself started on the road to success.
It won’t be long before you need to start finding money, however. There are legal fees to pay if you want to set up a limited company, and if you want your business taken seriously right from the off, it’s advisable to fork out for a good website designer, as well as a reliable web host. We’re not talking spending fortunes, here, and most people’s savings accounts – however modest – will be enough to cover everything.
Now, it’s one thing becoming a real technology business, but it’s another entirely to start acting like one. You might have raw materials and services to pay for, as well as things like marketing and advertising. Ultimately, the costs are going to start hitting home, and unless you are already making substantial profits, it’s going to be hard to scale.
So, consider taking out a small business loan. There’s plenty of info out there that will tell you more, but in short, be prepared. Banks and lenders will be impressed that you have already invested in your idea, but unless you have a rock-solid business plan, you’re unlikely to get what you need. And make sure you include a rundown of exactly what you intend to spend your money on – and be prepared to back up your idea. Lenders want to reduce risk, and see where their money is going to come from – it’s up to you to show them.
Finally, once you are established as a business, it can be tricky to take the next step. Business growth can be tricky to manage, and if you are scaling up quickly, you will need significant funding to achieve it. At this point, you might be looking at private investment. And let’s not beat around the bush – it’s a difficult decision to make.
Most private investors will expect you to hand over equity in your business in exchange for their money And that means you aren’t going it alone anymore – you are selling your company, in effect. That’s not to say it is without benefits. Your investor is likely to have a lot of experience, contacts, and business nous that you can use to your advantage, and will act as an advisor to ensure you succeed. Best of luck with the business idea – and happy funding!
CEO and Founder at Mighty Shouts.
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