Whether you want to run a Spain business or any other business around the world, you probably know that you will face tons of problems as a startup. Nevertheless, finding finances to get everything off the ground will doubtlessly be the menace that you will have to deal with from the word go.
You will need to hire staff, rent a production or office space, and buy good from suppliers. All these things will need money, which you don’t have at the moment.
Also, don’t forget that you will need to market your goods and/or services so that potential clients can know about your business. Remember, even a simple ad that says “We buy houses in Pittsburgh” will cost you money. But where do you get it?
Of course, you know that you can rush to your local bank, take a loan, and keep your business going. But what if the business doesn’t pick up? Will you be comfortable with the bank or any other financial institution possessing your property that you have worked hard to get?
But the good news is, there are many lesser-known ways of getting funding for your business. They include;
- Angel investors
Yes, if you want to take your business to the next level without having to struggle when looking for funding, try working with angel investors.
These are people who have already established entrepreneurs, and they are always on the lookout for the next business to invest in. A good example if the investors you see on TV programs such as Shark Tank.
You will be surprised to know that angel investors funded some of the most profitable business empires such as Yahoo and Google! You could be the next notable business if you try finding one who will be interested in investing in your idea.
- Venture capitalists
Venture capitalists are more like angel investors. They are ready to invest in a young business that has the potential to grow. What makes them different from the former is that they are not only interested in sharing equity in return for their investment, but they also want to have a voice in the management of the organization they invest in.
These individuals are concerned about returns on investment; hence they believe that they can only achieve this by having some control over the businesses they invest in. Nonetheless, if you find a good venture capitalist, your business might be the next success we shall give as an example.
- Vendor financing
Instead of spending a lot of time looking for money to buy goods from vendors, you can negotiate with them for longer payment terms.
In most countries, vendors will give business owners 30 days to pay their invoices, lest they will incur some penalties. However, if you have the right negotiation skills that every entrepreneur should have, you will be able to talk to them so that you have more money to plow back to your business in the interim.
This might seem silly, but it is one of the best ways to finance your business.
As long as you have a tangible idea, join multiple contests and participate in all of them. Make sure you pitch your idea in such a way that it will appeal the contest organizers, and you might win monetary rewards that you can use to finance your business.
Of course, entering contests is not easy since you will need to pay some entry fees, and the judging criteria might be tough. Nonetheless, as long as you are confident in your idea, you might get some cash to keep you going, not forgetting that you might wow some potential investors too.
Try some or all of these methods, and who knows, you might get enough money to start your business and become a market icon in no time!