LOOKING TO STARTING A NEW BUSINESS? HERE ARE THINGS YOU SHOULD KNOW ABOUT FUNDING


This is the age of entrepreneurs, many people have turned their dreams into reality with hard work. You too can achieve your dreams with right planning and knowledge.
So if you are having a new business idea and you are lacking funds then let’s talk about what you can do in this case, first of all let’s have a look at the different sources from where you can arrange your funds probably-

  • ANGEL INVESTORS- Is a person or sometimes a group who invests in the new small business in return for a share in the project's ownership. The benefits of working with Angel investors are that they are accomplished individuals who have a good knowledge about the market and will share some precious advice with you regarding your business to make it more successful. A particular disadvantage can be that you are going to lose some amount of power in decision making of the company.

  • VENTURE CAPITALIST-  Are basically those individuals who will give their money to those businesses only which have a good chance of giving them good returns. The Benefits of this kind of Funding are that a funding from this source will provide your business with a good credibility and you will have your reach increased, which will help you to get in touch with  future investors and partners. A big disadvantage of this kind of Funding is that you will lose a large chunk of shares in your company.

  • BANK LOANS- The benefits with this kind of Funding are that if you are qualified enough you will get your funds very fast but the disadvantages are that if you are taking a loan from bank then there is going to be a lot of documentation, also you have to pay the money bank rather your business success or fails and you have to very carefully  select the correct kind of loan for your project.

  • CROWD FUNDING-  In this method you will get your funds in the form of small amounts of investments made by a huge number of people. The benefits of this funding are that your business could be promoted in this process as in this kind of Funding your idea of business  will be shared with a lot of people via the Internet, your friends and family. Disadvantages are that it’s going to require more time than any other method.

  • GOVERNMENT AGENCIES – There are many government agencies also who provide small business with funds for their growth. Advantage of this funding  is that it will increase your chance for acquiring a bank loan, disadvantage for it is that there is a very strict guideline about who can acquire this funding.

Besides telling you all these methods of funding I will also give you one more advice and that will be to hire a Financial advisor, as they can help you in arranging funds from various sources by giving you the proper ideas of how to represent your business and also how to select the proper source for your funding, the advisor which I will recommend you to hire is ATHMAN.

Comments

Post a Comment

Popular posts from this blog

BEST INVESTMENT OPPORTUNITIES FOR YOU IN 2021!

Image
  “INVESTMENT “this is a powerful term, if we make the right decision and invest our hard earned money in the right direction we can make a good profit on it, but we have to keep in mind that a wrong decision can lead to a financial loss. Now there are various things which can help us in making a right decision, if we ourselves don’t have an  idea about where to invest our precious money then we can take help of Financial advisors, now a days the FINANCIAL ADVISORS IN SAUDI ARABIA are particularly giving really good results to their clients. Another important thing which we should keep in our mind while investing somewhere is that the investment path should match our own risk profile. We need to keep this thing in our mind that a high profit investment is also going to have higher risks and an investment with lower risks is going to have lower profit.  Now if we are investing a large amount of money in a project then we should take help of a financial advisor and we should ask them t
Read more

How to Find Financial Advisor for You

Image
  It’s not a hard task to find a financial advisor. But The Challenge is to know who will work best for you. whenever it comes to a big-budget purchase, we analyze the situation thoroughly. Let’s take an example, when you are going to buy a car, you check that it matches your needs and specifications, check on durability, engine features so you get the best deal possible. When you planning for a vacation, you try to find maximum choices to get the best available offer without compromising. What is the basis of all expenses?? The foundation of all of it is simple: MONEY Then Don’t you ever think that you need an expert on the same to help you save some money? Choosing the right Financial Advisory can save you money and also affect your future finances.  Here is a small guide to help you find the right financial advisor for your personal finance or business- Qualification and Certifications- You should confirm that advisor has essential qualifications. Also, they should pass government
Read more