3 Underrated Funding Sources for Start-ups
How to find financing for a start-up / start-up business?
Often underestimated, these sources of financing allow you to be ready to start your business without wasting precious time looking for other sources of financing. More and more people are deciding to start their business for the many benefits it brings. Unfortunately, one out of two businesses does not survive the first 5 years of existence…
What explains this high rate of failure?
In addition to setting up an ill-defined business model or establishing a bad marketing strategy, the lack of financing is one of the major issues facing startups. The sources of grants available to start-ups are often difficult to find and the most well-known ones are often highly restricted. By focusing on sources of financing that are more specific to your business, you will increase your chances of success.
Beyond the types and vehicles of financing, it is also very important to be well prepared. What is the key to success for people to say “yes” to you? All the answers here.
So here are lesser-known funding sources that could potentially pay off big.
Have a paid pilot project to make sales quickly
Making sales at the business model validation stage is often underestimated by entrepreneurs because they are too busy designing their products. The MVP (minimal viable product) can bring in a lot of money and can then be used to finance the development of the company.
Moreover, this approach is the best to know if there are really customers interested in buying your product.
Launch a crowdfunding campaign
Crowdfunding campaigns are a great way to get money from potential customers even before production begins. This type of financing also allows you to know the potential market of the product, because the more the crowdfunding campaign works, the more people there are interested in buying your product.
Sources of government grants
The sources of government grants for business start-ups are often underestimated, because the choice is (too) wide. It is therefore practically impossible to know them all and it is difficult to know which potential grant best suits our needs.
There are several assistance programs for people who want to start a business or simply for those who want to work on their own. A very popular program is the government’s support for the self-employed worker.
In short, as mentioned earlier, there are a multitude of grants, loans and financial aid for young businesses. It can therefore be difficult to find your way around, to find all the answers to your questions and to know which program best suits your needs and your reality. That’s why Professional help makes you to focus on the most important elements of your business and what you do best!
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