There are plenty of business ideas going round and for someone who can easily spot them it would be a great opportunity to implement one of these ideas to fill any noticeable market gap. This sounds easy enough except for the part where you have to look for capital and go through the tedious business of establishing a startup. Usually, once the pre-startup preparation such as research and viability studies have been done, the only thing that may now hinder you from proceeding with a startup is lack of enough capital and funds. As such, it is necessary and advisable to be constantly aware and updated on any opportunities for funding that may arise so that you can take advantage of them to start your business.
The first and most obvious and also probably the easiest way to find your business idea is through your savings. Usually this is not the most reasonable or applicable approach but it is actually possible to save up and be able to fund your startup. The other option to funding a small business is by asking for contributions or small loans from close friends and family. The only limitation to this method is that it may only work in sole proprietorship businesses that do not require a large sum of money to startup. Now let’s talk about the formal and official ways through which you can source for funds. The number one way could be by making a formal application to financial institutions asking for loans. Want to make sure that when sending out your loan application, papers showing your business plan should also be attached as the intention for applying for the loan. Of course, your credit score matters a lot for this type of funding. Third-party funding is the other option that is becoming quickly popular at this moment. The third party works as a middleman between you and financing institutions and you present your business plan to third-party. As the entrepreneur, you will send your application to the third-party and the third-party will forward the application and connect you with potential financiers who will then respond to the proposal. The proposals are usually that you get to choose which one you feel is best for you. This is quite a popular method of sourcing funds and it exposes you to a pool of potential financiers and when they respond to get to choose which one you feel is the first one.