Getting funds to start or expand a business can be a challenge to many people. You might have an idea but for that business idea to be realized, you need money.
A survey conducted in 2016 found out that raising capital was the major challenge facing young and upcoming entrepreneurs.
However, there are various ways through which people can get funds to start different types of businesses.
If you are planning to start your storage business, getting enough capital is probably one of the things in your mind. Below are some of the ways you can raise money to start or grow your storage business:
This is one of the most common ways people use to fund their business. Bootstrapping means funding a venture through personal financial means, such as savings. However, you need to start saving early, in order to get enough money to kick-start your business.
Another bootstrapping strategy is using your credit. The good thing about this option is that there is no interest in whatever amount you request. It is important to find out the estimate that you will require to get the business started.
Investing your own money in the business can help build confidence among investors. It shows that you have faith in what you are doing.
Statistics show that over 70% of startups get their funding through loans. There are a lot of financial institutions in Australia that have tailor-made loans form small business. Their interest usually depends on the amount you are borrowing and the duration need to pay back the loan.
A small business loan is good because of its terms and conditions. In most cases, a bank or any financial institution will give a minimum of two years to repay the loan. They assume that by then, your business will have started generating some income.
Friends and family members
There are many businesses that have started through the support of family members and friends. All you have to do is present to them your storage business idea. Of course, not every friend or family member will be able to give you the amount you want.
The best way is to identify people who share your vision and convince them about your idea. You can even promise to refund them if you are requesting a large sum of money. If they agree to give you a loan, then you should clarify the terms and when they will need their money back.
Believe it or not, this is another common way people use to raise funds, for their business and you are not an exception.
There are a lot of crowdsourcing websites, where you can pitch your idea to like-minded individuals and convince them to give you funds.
Although this might not be an easy way, there are many people who have recorded immense success through crowdfunding. What strategy are you going to use?
Come up with an incredible story of how you came up with your storage business idea. You can then use a podcast or video, to explain in detail how the business will affect you as a person and the community at large.
Find an investor
This is another possible way to fund your storage business. There are many people who are usually known as angel investors. They have money and always willing to invest in any business idea that promises good returns.
If you want to succeed in getting an investor, the first step is to create a good business plan for your storage business. Sit down and do all the calculations.
For example, start by talking to Brisbane Mezzanine Floors and find out the cost of different types of flooring systems.
This will give you an idea of how much you require, to fully fund the business. You should also have written a contract, with our investors on how they will recoup their money. Is it through equity on your business, royalties, or both?
There are many options you can use to fund your storage business. The most important thing is to choose a source that won’t negatively affect your business in the near future.
Eric Reyes is a passionate thought leader having been featured in 50 distinguished online and offline platforms. His passion and knowledge in Finance and Business made him a sought after contributor providing valuable insights to his readers. You can find him reading a book and discussing current events in his spare time.