4 Ways To Finance Your Business Venture

NCFA Guest Post | Mar 4, 2019

venture funding - 4 Ways To Finance Your Business Venture

At some point in your business life, you will need to raise money. It might be right at the start so you can hit the ground running, or it could be later on when you want to expand and need a boost. Whenever and why ever you want to raise money, it’s important to know what options are open to you, as there are many different ones, and they won’t all suit your situation. Here are some of the main ways to finance your business venture, no matter what reason that money is required.

 

Look To The Government

Depending on how much you need, what you intend to do with it, and what sector you are working in, there might be a government scheme or grant that could work for you. You will need to research this thoroughly, and it is always wise to ask for expert advice if you think there is something that could apply to you and your business.

If in doubt, apply for the grant or scheme anyway. The worst that can happen is that you are told no, and it might just be that you are able to obtain the money you need through this means. Even if it is a loan, the interest rate is likely to be much lower than those of traditional lenders.

See:  Peer-to-peer lending will help small businesses stay afloat

Loans

What most people think of when they start to consider financing their business is a loan. This could be a business loan or perhaps a personal one. Loans can be extremely useful, offering you the money you need and giving you the peace of mind of knowing how much you need to pay back each month, and for how long.

To obtain a business loan, you will need to have a business plan that outlines exactly where you plan to spend the money and how it will help you to make a profit so that you can pay the money back again. Some lenders might not be able to lend to a startup business that has no financial records, however, because they simply can’t be sure of being paid back.

In this case, some business owners might turn to a personal loan. This can be just as good, as long as the business pays the loan back so that the individual is not out of pocket. The only problem is that you might not be granted a loan due to a poor credit score. This is why it’s best to check beforehand; you can either dispute your ranking on ChexSystems and find out more on Crediful.com why this is a good idea, or you can try to repair your credit if you can’t find any errors. At this point, you can apply for another loan.

 

Find An Angel Investor

An angel investor is a wealthy individual who is keen to invest in a business in order to get a return on their money. How much they put in and how much they want in return will vary, and is something you will need to discuss between you if you can set up a meeting with such an investor.

Some angel investors will want to put money into a business and then leave others to run it. Others will want to be more involved, and may want to be part of the management team. Again, this is all to be negotiated when the finer details are discussed.

See:  CSA Staff Notice: Update on the Start-up Crowdfunding Registration and Prospectus Exemptions

Crowdfunding

You will probably have heard of crowdfunding, and perhaps you have even invested some money yourself, but you might not have considered it for your own business. However, it can be ideal for raising money to help you to grow, and shouldn’t be dismissed out of hand. Crowdfunding is no longer just for charities and good causes; small businesses are more than welcome to create a page as well.

There are many different crowdfunding companies available to choose from, each one specializing in a different area. Research is key, because writing a great campaign but using it on the wrong forum is not going to help you get the money you need for your business.

The first step is to find the right forum and create the campaign. After this, you will need to share it on social media, and ensure that others share it too. Some campaigns offer stakes in the business or products or services in return for cash, so you will need to know what you are willing to give away in order to bring in the money you need.

 


NCFA Jan 2018 resize - 4 Ways To Finance Your Business Venture The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - 4 Ways To Finance Your Business VentureFF Logo 400 v3 - 4 Ways To Finance Your Business Venturecommunity social impact - 4 Ways To Finance Your Business Venture

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - 4 Ways To Finance Your Business Venture




Guest Post | Jan 27 2023 Starting a business in the Asian market can be an exciting and rewarding experience. With its vast population, diverse cultures, and growing consumer demand, there are huge opportunities for entrepreneurs to gain success in this region. However, it is important to understand the unique challenges that come with doing business in Asia. From navigating cultural differences to developing effective marketing strategies for local consumers, establishing a successful small business requires careful planning and execution. Popular Asian cities to start a business Whether you’re looking for a vibrant culture and nightlife or a more traditional setting with lower overhead costs, there is something for everyone in this vast region. These are some Asian cities which are always popular with both entrepreneurs and big companies for you to consider when planning a breach to the Asian market. Hong Kong – The Gateway to Asia’s Markets Hong Kong is a top destination for entrepreneurs from around the world. The city boasts low business and corporate taxes, easy-to-navigate government regulations, pro-business banking and financing laws, and strong infrastructure to support businesses of all sizes. Starting a business in Hong Kong is relatively easy and straightforward. All new businesses ...
Read More
Unsplash Scott Graham Business planning - 4 Ways To Finance Your Business Venture
Guest Post | Jan 27, 2023 When preparing for your child's future, everyone wants the best for them. However, planning for a healthy financial future doesn't always come as naturally. Fortunately, there are some simple guiding principles that can help you create a savvy savings plan for your little one's benefit in the long term. Here are just a few of the top ways to save money for your child's future: Open a Savings Account  This will give you an easy way to store and track all the money you save in one place. Many banks offer special accounts for children, including bonus rates and other incentives. Banks also offer online banking options, and it's easier than ever to keep an eye on how much you're saving and how it's growing over time. You will also be able to review your budget and adjust as needed. This will ensure you are constantly optimizing your savings. Savings accounts are also a great way to teach kids about financial responsibility and the importance of saving for the future. Set Up Automatic Transfers  If you want to ensure that you consistently contribute to your child's savings, consider setting up automatic transfers from your ...
Read More
Pexels Oleksandr Pidvalnyi student - 4 Ways To Finance Your Business Venture
Coindesk | David Z. Morris | Jan 25, 2023 Global inflation is at a turning point. Here’s what that could mean for crypto’s nascent turnaround 2023 crypto bounce:  Blue-chip crypto assets including bitcoin (BTC) and ether (ETH) have had a very nice 2023 so far, with BTC up roughly 36% since the New Year and ETH up close to 30%. There’s growing reason to think that “the bottom is in” for crypto markets, and some macroeconomic data suggests this year will be much brighter for the sector than 2022 See:  Are Markets Moving Towards a Crypto Fiduciary + Caveat Emptor Standard? Why?  [arguably] the crypto bottom could be in since bad actors and the consequences of their contagion-spreading leverage plays have been flushed out. Certainly on an emotional level, getting rid of the likes of Alex Mashinsky, Do Kwon, Three Arrows Capital and Sam Bankman-Fried feels like the chance for a new beginning. While getting rid of scammers should mean we’ve cleared some major downside tail risks, it hardly amounts to grounds for a new crypto bull market. Instead, what will matter most over the next year are macroeconomic conditions, particularly the impact of inflation and interest rates on crypto ...
Read More
Freepik rawpixel.com bull or bear - 4 Ways To Finance Your Business Venture
NFX | Gigi Levy-Weiss | Jan 26, 2023 An overlooked key to growth: How well you transition from Founder to CEO determines how your company scales. Seed stage Founders have a hand in everything: marketing, hiring, product, sales, everything. You have to early on.  But when your startup starts to grow you can’t – and shouldn’t – keep doing it all yourself. Once you reach 30-50 people, your goal should be to build a team and mechanisms that will do “everything” so that you, the CEO, can focus on leading and managing. The deceptively simple secret: Elite CEOs build systems. Read:  Culture and Diversity Leadership: Tale of Two Doors Hiring:  Before we dive into systems, let’s get this out of the way. Don’t worry about spending too much time on hiring. Take the time you need to surround yourself with the right people[, and don't be afraid to try people out'. Wix CEO:  "I cycled for 22 people before I found Omer Shai, my CMO. I hired and moved people to different things. I fired people. It was around 22 people that they hired within about a year and a half…When I got to Omer after a few weeks, it ...
Read More
How elite CEOs really scale - 4 Ways To Finance Your Business Venture
Tristram Waye for Bitvo | Jan 26, 2023 Crypto blew up, governments cracked down, regulation forthcoming?  We are now in a place where awareness has to be exercised in places where trust was once taken for granted.  And that means embracing two principles from the Middle Ages. These are caveat emptor and the fiduciary standard.  Caveat emptor:  The word caveat emptor means buyer beware in Latin. The idea is that the buyer is responsible for assessing whatever it is that they are buying. Its origins date back to the open markets of the 16th century. In developed countries, the concept has moved from buyer to seller beware. Numerous consumer protection laws have been enacted to lift the burden from the buyer and shift it to the seller.  In general, there are numerous remedies for established consumer products. See:  How Important is KYC for crypto transactions? But for speculative, largely unregulated assets like crypto, caveat emptor is still highly relevant. Keep in mind that in contrast with venture capital, crypto secondary markets are a massive benefit. As William Janeway said about venture capital, cash and control are key elements in VC. Meaning that if the project goes sideways, you can’t sell ...
Read More
Unsplash Kenny Eliason thinking - 4 Ways To Finance Your Business Venture
Guest Post | Jan 26, 2023 If you want to learn more about investing, especially how to buy shares, you've come to the right place. In this article, we'll provide you with all the information you need to begin your trading journey with confidence. Do you want to know how to buy stocks? We'll go over the basics of what stocks are, how to choose the right ones, and the different ways to purchase shares. By the end of this review, you'll have a better understanding of how to get started in the world of stocks trading. What are Stocks? When you invest in stocks, also referred to as equities, you are essentially buying a small piece of ownership in a company. As the company prospers and becomes more profitable, the value of your shares will tend to rise. However, it's important to remember that these securities can also decrease in value, particularly during tough economic times or when a company is struggling. For example, let's say you decide to invest in a well-known tech company that specializes in developing software for smartphones. As the company keeps releasing new and innovative products, its profits and stock value are likely to ...
Read More
Freepik stock trading - 4 Ways To Finance Your Business Venture
FIS Release | Kim Snider | Jan 24, 2023 A global study of 2,000 executives at firms across markets revealed plans to increase investment in embedded finance, environmental, social, and governance (ESG) frameworks, and decentralized finance in 2023, including cautious optimism towards cryptocurrency. Inaugural research by FIS 2023 Global Innovation Report asked c-suite and senior executives in financial services (banks, insurers, capital markets firms, and fintechs) and non-financial businesses (retail, restaurants, travel, gaming and digital content, and technology providers) globally about their key areas of financial investment in 2023. 4% of financial services firms’ executives across the globe say they will invest significantly in developing embedded finance products in 2023 as consumers demand more convenient ways to pay, bank and invest. Nearly two-thirds (61%) of all non-financial services executives told FIS it will be strategically important to have a presence in the metaverse in the next three years. See:  Deloitte 2023 Sustainability Report: Most Organizations Have Increased Investment but Tough to Move the Needle FT Partners Jan 2023 Blockchain and Crypto Market Update Report ESG is top of mind for financial services firms globally, with 60% of executives saying they are developing new ESG products and services. Nearly one-third (29%) ...
Read More
FIS investment trends research 2023 - 4 Ways To Finance Your Business Venture
Jan 26, 2023 The gambling industry in the United States significantly contributes to the economy, generating billions of dollars in revenue each year. From Las Vegas to Atlantic City, casinos and other legal gambling attract millions of visitors and employ thousands of people. In recent news from Casino USA, the US gambling industry has set a new quarterly record for casino revenue, reaching an all-time high. It is a significant milestone for the industry, demonstrating its resilience and continued growth despite the challenges posed by the ongoing COVID-19 pandemic. Details of the Record The US casino industry generated record-breaking revenue in the latest quarter, surpassing all previous records. The revenue generated is yet to be officially announced, but early estimates suggest it exceeds $50 billion. It represents a significant increase compared to the same quarter in the previous year and is a clear indication of the industry's resilience in the face of the ongoing pandemic. The latest quarter's revenue numbers are significantly higher compared to previous quarters. During the last quarter, the industry generated around $40 billion, indicating a growth of over 25% in the latest quarter. It is an impressive performance, especially given the ongoing uncertainty and economic challenges ...
Read More
Freepik Bodysport women holding money - 4 Ways To Finance Your Business Venture
Knowledge at Wharton | Angie Basiouny | Jan 17, 2023 A new book from Wharton management professor Emilie R. Feldman offers a comprehensive primer on divestitures, which can be a financial game-changer for companies that know how to execute them correctly. Feldman, whose research focuses on corporate strategy and governance, spoke to Wharton Business Daily on SiriusXM about her book, “Divestitures: Creating Value Through Strategy, Structure, and Implementation,” which was released in December. Opportunity cost: Often the idea of focus is overlooked by executives, and this is really the missed opportunity that could be pursued in the sense that divesting, removing assets and businesses that don’t fit and might be underperforming, could free up resources to pursue better opportunities in a more focused fashion after completion of those transactions. “Managerial compensation is strongly correlated with market capitalization, so there’s a financial incentive not to divest because doing so reduces the executive’s bottom line.” See:  Bill Gates Announces $20 Billion Donation and Obligation to Return His Resources to Society 4 strategies: resolving or exiting underperforming businesses; improving focus; reconfiguring and reshaping the corporate portfolio to move into more profitable opportunities; and addressing regulatory requirements. Types of divestitures:  Sales are the most ...
Read More
Divesting - 4 Ways To Finance Your Business Venture
Jan 26, 2023 Thinking of buying a home for the first time but worried about the upcoming recession? With so much economic uncertainty, it's understandable that you might be a bit hesitant to make those big purchases. But don’t worry because There are many first-time homebuyer assistance programs available that will help you make your dreams of homeownership a reality - even in the most uncertain of times. Advantages Of Homeownership During a Recession It’s no secret that recessions can be tough, but did you know that homeownership during a recession can actually work in your favor? According to the US Census Bureau, the median net worth of homeowners is $195,400 higher than that of renters. This allows homeowners to weather the storm when the economy falters better than renters who rely on fluctuating rental rates for their monthly income. Additionally, homeownership offers a number of tax benefits for homeowners, including: Tax-free interest Tax deductions for mortgage interest Tax deductions for property taxes Tax deductions for mortgage insurance premiums Tax deductions for energy-efficient home improvements But one of the most important advantages of homeownership during a recession is the potential for long-term growth. Property values may decline slightly during recessions, ...
Read More
Unsplash Joshua Mayo mortgage - 4 Ways To Finance Your Business Venture

 

Leave a Reply

Your email address will not be published. Required fields are marked *

three × two =