Thinking about taking your career to the next level?
An increasing number of Millennials are deciding to take their careers into their own hands.
But if you’ve got an idea that could be a money generator, you still need to figure out how to turn it into a profitable business venture.
Regardless of whether it involves working in technology, gaming, catering, retail or construction, you might be tempted to draw upon your own savings or borrow funds from family and friends in order to get started.
However, this carries a lot of personal risks and could create problems later on in your development.
On the other hand, you could raise capital for each stage of your business’ development by exploring what the Alternative Finance Industry has to offer.
TABLE OF CONTENTS
Millennials’ Guide to Funding Your Startup
Millennials, don’t worry. There are ways to make your dreams become a reality.
Here are the smartest ways to fund your startup.
1) Investment Crowdfunding
For many startups, Investment Crowdfunding can prove to be an invaluable way of generating funds for your business using an online platform such as Kickstarter, Seedrs, and Crowdfunder.
It typically involves you appealing to investors and explaining the various benefits of investing in your business through creating articles, videos and holding live Q&A sessions.
However, in exchange for their funds, you’ll need to offer them equity in your business.
2) Peer-to-Peer Lending
Just like Investment Crowdfunding, Peer-to-Peer Lending (or Loan-based crowdfunding) also requires you to appeal directly to investors across an online platform and can be very useful for both start-ups and small businesses alike.
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5) Business Loans
Business Loans are typically secured or unsecured, and can be invaluable in providing a large lump sum for small and established businesses.
However, in order to make an informed decision, you need to understand how they differ and what that means for your business.
- Unsecured Business Loans: allow you to borrow between 5,000 – 250,000 without the need to put unencumbered business assets (equipment, machinery, vehicles and property) at risk. However, due to the amount of risk this exposes the lender to, unsecured agreements are often subject to stricter lending criteria and carry more interest (compared with secured agreements). Nevertheless, this remains a very useful option if you aren’t currently a homeowner.
- Secured Business Loans: on the other hand, a secured product could enable you to borrow anywhere between 5,000 – 1,000,000. This time, you’ll need to present the lender with security using your unencumbered assets. Although this may allow you to borrow more capital, you run the risk of having your assets repossessed should your business default on the fixed monthly repayment scheme.
Looking to start and grow your own business?
Starting your own business can feel very intimidating.
On top of forming an effective business plan and getting your basic day-to-day operations in order, you also need to ensure that you’re able to support your business’ growth.
Fortunately, Alternative Finance is able to help, giving you access to a wide range of finance solutions for funding your startup.