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Here’s How You Can Raise Capital For Your Business Idea

You might dream about setting up a new company or creating a start-up and have a billion-dollar idea. But how would you implement that? For your own business, you would require an office space, a tech team, a website, and cash sufficient for the rent every month. Therefore, the bottom line is – you need money.

Whether you are launching a new app or opening a stylish and luxurious café, or anything else, the first and foremost thing you would require is money. Without funds, you won’t be able to put a single step forward. Now, from where will the money come from? There are some ways to raise capital for your business idea.


When starting their venture, entrepreneurs use the process of bootstrapping. What does bootstrapping mean? It is a way to arrange capital for your company with the help of your funds like your savings account, credit cards, etc. Many times, using your funds is a better option than raising money for your business or borrowing money from a lender.

You will find a lot of entrepreneurs continuing to fund their own business or bootstrapping till the time they reap profits. Bootstrapping implies that you can safely stay away from loans and the payments you have to make every month. If you aim for an early profit and scale up your business in a short period, opting for external funding sources might prove advantageous.

Friends and Family

Many of you wouldn’t like to borrow money from your friends and family. But if you ask for help from your closest people, it will be a fruitful step rather than looking for external funding sources. Asking them isn’t that daunting. Who knows, a few of them can toss in some good bucks for your project.

However, before you approach your friends and family for financial help, make sure that you have a proper business plan ready at hand. That will simplify you to explain what you want to venture in, what you want to sell, what steps you will take to make money. Also, explain to them whether you are asking for a gift, an investment, or a loan from them. This will ensure that your close ones will have a clear picture.

Look Local

If you are setting up a small business, it’s better to figure out if you can receive help from the small business development center in your locality. These centers play a key role in connecting you with angel investors for the capital and entrepreneur groups for networking. Aside from that, they can also come to your aid while you try to figure out what kind of loans you are eligible for. Another source of information and guidance concerning local funding is the local chamber of commerce.

Take Out Loans

You might qualify for a bank loan if you can show that you have already started taking a grip on your business and your company is making money. Wells Fargo and Bank of America have committed themselves to small businesses recently. Of course, the funding might differ from one bank to another and from one situation to another. Availing of a traditional bank loan is a good option if you are looking for a loan in the range of $5000 to $50,000.

Angel Investors

Angel investors are an option you have if you have a large business. If you are looking towards funding your tech start-up, you will eventually need more money than what you would usually get from crowdfunding or bootstrapping. You will have to get out of your circle and approach external investors.

Angel investors are those business professionals who are successful with a high net worth. They are usually looking to invest a portion of it in companies that look promising and can give them returns. An angel investor usually funds in the range of $10,000 to some million dollars.

Availing funds for your business can be quite a challenging part. However, once you have the funds arranged, you are bound to feel rewarded. And then there will be no stopping you from building your dream business. But remember, not ever compromise on your passion and do ample research before you take the big business leap. Did you find this blog useful? Do share your thoughts in the comments section!

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