When it comes to developing your home based company, there are a number of different points to take into consideration. Firstly, if you are looking to expand your company from home it all depends on what type of industry you are in. For example if you are an online company or e-store selling stock then you may want to think about increasing your warehouse. In addition, you may want to examine what you might need in order to take your company to the next level. However there are many hurdles to jump beforehand. Check out below just some of the ways you can obtain the necessary funds.
Friends and family
At the end of the day it is better to start your fundraising much closer to home. If you ask your friends or family for a short term loan, they may be much more inclined to assist you. In this way having those who you trust the most helping you ensures that;
- There does not need to be a written contract agreed by both parties.
- It is much more informal and you have a much better chance of obtaining funds.
- Trust and reliability is already there which can help you significantly.
You can also have the chance to take advantage of a wide variety of angel type investors who can help your business. This means for an amount of money as well as a potential stake in your business you can benefit from a partnership not to mention funds. However you will need to impress them with;
- A professional presentation.
- Forecasting projections on turnover as well as sales.
- Convincing them how your business aims to grow, whilst at the same time identifying competitors.
Another area which you could turn to is of course going to your bank. They may have the ability to help you out with financial funds such as business loans. On the other hand, your bank may be able to assist with presentations as well as giving you support for your business in more ways than one. However you will have to present your case and persuade them that your business is certainly worth investing in for the long term.
Another way in which you could develop your business is thanks to fundraising sources. You may be able to get someone on board in order to help you out with this particular method. It may be time consuming to do, but by bringing in a trusted individual they could;
- Approach companies as well as individuals on your behalf who may want to invest.
- Already have contacts or leads who may be interested in supporting your company financially.
- Perform fundraising both on and offline and through social media networks.
Known as crowd financing crowdsourcing or crowd-sourced fundraising, this recent social phenomenon is a group effort where people come together to club money together. In the majority of cases this is normally done via the web and supports a host of organizations from startups to small businesses. By gaining small contributions from different types of parties, it enables you to collect funds through a wealth of small contributions from numerous parties. There are a host of crowdfunding models which usually involves;
- Several people or companies where you can pitch your idea to be backed.
- Setting up a page online to promote your business and what it entails.
- Spreading the word through social media, friends, family and marketing techniques.
As we can clearly see there are several ways in which you can obtain funds for a home based business. If you follow some of these tips, you will be well on the way to expanding your company in not time.
Zoe George is a freelance writer for Discovery Credit, a professional finance company that specialises in helping clients find the best solution for their money concerns. They provide business loans that can be used in a variety of situations.