It is very important to come up with interesting business ideas and launch them. It is entirely a different step to convert your business idea into a financial success.
According to Statistic Brain, above 50% of US companies fail just after five years and almost 70% fail right after ten years. The findings of the brain study suggest that the major causes of such failures might be lack of motivation, lack of focus, taking ideas from the wrong people and raising money very soon.
Another study by CB Insights, discuss why a new business fails. The study enlists 20 main causes of the failure. These causes include strong competition, no market need, bad marketing and running out of money before meeting your goals. Getting the right funding for your business, while trying to expand it, is very important for your company’ success. So, how could you do this?
Take Some Loan
While taking a loan for your business, be sure that you have considered all the available options. As business groups are valid options, they are not the only way to finance. It is very important to not take too well and low interest rates that make headlines. When offers on low rates for the business along with solid business plans do exist, headline figures are usually designed to stand alone and grab attention.
Working with Investors
While going to investors, you can apply for venture capital funding. You can also work with private investors who are interested in your business expansion. One of the best reasons for getting help from the private investor is that he or she may offer financial insight as well as experience that is related to your business plans and highlight the perspective that you might not have considered before.
The most challenging aspect for business owners is that private investors will for sure, ask for some share of your business in return for funding. While negotiating with them, terms and conditions related to equity, it is very important to consider how much the business growth made you happy.
This crowdfunding process is another way of expanding your business. A number of platforms are available, including Kickstarter and Indiegogo (founded in 2008). The option is especially effective if you are certain that your business keeps loyal followers as well customers who really want to see your business expand as much as you are doing.
Those, who invest through crowdfunding platform have the potential to become positive micro investors and brand ambassadors who can create a big level of buzz and excitement about the business expansion across a number of social networks via word of mouth. On the top of all, you will get benefit from the kick of free publicity.
Credit Card Stacking.
This is an expensive method as compared with other financing options, particularly when your business has a low revenue. Simply using multiple credit cards, which has total credit limits equal to financing amount you need for your business, you can add together the investment required to get the rolling ball on your business expansion with much effort. But, it is not the easiest task to get into the process, so contact a financial consultant expert before getting into the credit cards heap.