The decision on whether or not to start a business usually comes down to funding. Simply put, it’s whether there’s money available in the bank to do it. The bad news is that credit can be difficult to come by. The good news, however, is that there are more options than ever before available to entrepreneurs, looking to launch their startups in the marketplace.
When it comes to finding finance, things are finally starting to look better. According to Christine Lagarde, chief of the IMF, world economic outlook is looking good. Growth rates for 2017 and 2018 for the global economy will top 3.6 percent this year, creating wealth and driving investment. The bottom line? Startups can expect plenty of funding in the years ahead – so long as the world avoids another credit crunch. Here’s how to get money to finance your startup.
Do you remember what Facebook was like in the early days? Originally, it was mainly a network for connecting university students to one another so that they could share messages and photos. As the network grew, how it operated changed in significant ways. It went from being something that was niche to something that was ubiquitous.
The same sort of thing is happening with crowdfunding sites, like Indiegogo and Kickstarter. Once upon a time, they were funding computer games and for people to build strange contraptions in their sheds. Nowadays, crowdfunding is being used in almost every industry, thanks to consumer demand.
It’s worth noting, however, that crowdfunding’s popularity is a double-edged sword. Yes, it’s great for people who want to invest their money because they have so many projects to choose from. But it can be bad for entrepreneurs who want their particular project to stand out from the crowd.
Not all businesses need a massive injection of capital to get started. Some just need a credit card or a personal loan. For entrepreneurs with bad credit, there are more options today than ever before. Using collateral to get a personal loan with bad credit has become increasingly popular, thanks to the sheer amount of competition between different lenders. Not only that, but now that we’re closing in on ten years after the financial crisis, banks are finally showing signs of being willing to lend again. The world, it appears, has turned a corner.
Angel investors are a little bit like venture capitalists, only a lot smaller. Whereas venture capitalists are usually a group of professionals, angel investors are often only a single person looking to make an investment. There’s good news, and there’s bad news when it comes to receiving credit from Angel investors. The good news is that you can draw on their wealth of experience to grow your company. The bad news is that it is not unusual for them to ask for a 49 percent share in your company in return. From their perspective, the risks are high, and so they want the reward.