You had a great idea, you put the idea to paper, you set the wheels in motion, you found some good people to work with you, maybe you already have a working prototype. But how can you take the next step? Where can you find the funding that you need to bring your idea to market?
There are numerous options available to fund your start-up, but it’s worth looking into which option will work for you. How much control do you want in your new business, and when are you able to start paying back loans are a few of the questions you need to ask yourself:
A number banks will be prepared to give out a small business loan, as long as you’re able to supply them with a full business plan that is viable to them, financial details and a long list of other requirements that have to be met. You will have start to pay that loan back rather quickly. On the other hand, you will stay in 100% control of the business. Since the crisis started in 2008, these finances have gotten a lot harder to come by however, so find out at your own bank what the possibilities are.
2. Angel investors
If you find the right angel investor for you, this is definitely an option looking into. They will want a stake in your company and take a part of the profits, but it could nonetheless work out quite beneficial for you as they typically have lots of business experience and offer expert advice. This option will only work for those start-ups who can offer a return on investment.
Websites like OnePlanetCrowd, Kickstarter or Indiegogo are the perfect platform for new businesses to raise enough money to start developing your product. Crowdfunding has exploded in popularity over the past years. This also means you will face a lot of competition on those platforms.
4. Postcode Lottery Green Challenge
Enter the Postcode Lottery Green Challenge competition! Seriously, 500,000 EUR is up for grabs if your sustainable business plan is the best of the bunch, and we don’t want a stake in your company in return. There are numerous other competitions you can enter, depending on the type of technology, product or service you are developing. And there are websites keeping track of all these options. Have a look at the YouNoodle platform for example, or PitchBurner.