Finding funding for your business
Many entrepreneurs at any stage are faced with the need to find investment in their business. Investment in start-ups is needed at the start-up stage, for an established business project, funding may be needed for scaling up or working capital.
Investment options depend on the type of business you have, its stage of development, whether you have a team of specialists and so on. For example, banks are unlikely to lend to start-ups, but they have access to venture capital investment, and conversely, an established small business has a better chance of getting a loan from a bank.
Develop your business plan
Either way, you will need to write a business plan. However, investors will not invest in a business plan or idea, but in your business, its entrepreneur and team. A potential investor first considers a project description, then a presentation, and the next step is a business plan. Any commercial bank will also require a business plan, or feasibility study as it is called.
Finding investment for your business
Where to look for investment depends on what kind of business you run. The specifics of finding funding for startups and internet companies are very different to a local retailer.
- Venture capital investment. Venture capitalists usually look for fast-growing businesses that produce something innovative that is not yet on the market.
- Business angels. These are investors who put their money into early-stage start-ups.
- Loan from a bank. Banks are more willing to lend to small business owners. Jobcentre. Ukrainians have the option of getting funding to start their own business from an employment office. You must be registered at the centre for at least one month; you must write a realistic business plan; and if approved, you will get the money permanently.
- Crowdfunding. Your project may be suitable for crowdfunding.
- Business partner search service bepartner. Here you can find investors who prefer to invest in your field, or a partner with whom you share all the risks.
Assess your business, see which source of funding is right for you. The best thing you can do with your business plan is to implement it!