Most people find starting a business very daunting. Which is a shame, really, because most young entrepreneurs these days are just teeming with practical and fresh ideas. They were able to think up new ways to solve old problems or find solutions to problems that make modern society unbearable. Take, for instance, the nail polish that tells you if a drink has been spiked with date drugs. Horrifying as it is, spiking drinks with narcotics have become increasingly common, that a student decided enough is enough and formulated this nail polish solution.
But of course, with great ideas comes an awful lot of financial backing. Businesses need capital to get it up and running; while for some people, it is not much of a problem, for others, well they have to disagree. Not to mention that duality that goes with starting a business: an opportunity to welcome new ideas, but a risk because of the economic climate these days. This is the reason why companies like Kikka Capital, for instance, have set up an online loan scheme that can help businesses get a helpful nudge in the right direction.
If you are a young entrepreneur, do not worry. Here, we have listed a couple of ways to get your business funded.
Have a clear vision of what your business is going to be
When applying for a loan, one of the things a provider will look for is your business proposal. It is not just to study how much you need to spend or where you are going to spend it on, but they need to make sure that you know what your niche is. It is one thing to have an idea, it is another if you know where that idea will take you, or if you know what to do with that idea at all. So if you have been bitten by the inspiration bug, focus on one workable idea first before branching out from there.
Look for grants or crowdfunding
One of the ways you can get funding is through grants. It is basically a no-strings-attached financial support so young artists or entrepreneurs can start their venture. You can Google search grant giving bodies and send in your application. They will review your proposal and decide whether they will give you a grant or not.
Another option would be joining contests, some of which are hosted by Amazon and MIT. It is their way of rewarding people for thinking outside of the box.
You may have also heard of crowdfunding. With the popularity of websites like Kickstarter and GoFundMe, you can easily get your idea out there through a demo video and entice people to crowdfund your business. You can give them perks for every amount they give you to start manufacturing your product.
Find out what unsecured funding is
The younger generation is mostly hesitant to apply for a business loan, and it is quite understandable. If you are unable to pay back the loan or do not have a collateral, it might put your business at risk. But for start-up businesses, the best way to get is through unsecured financing. This means that providers will give you the funding that you need without having to put up any of your assets as collateral or as payment. Discuss this option with your provider so that you know what requirements you need to prepare.
These are just some of the options that are easily available to you. Remember that your idea does not have to be eccentric or novel, it just has to make people’s lives easy. Look for a problem and brainstorm ideas on how to solve; that is the first step of any business venture.