If you are dreaming of starting up your own business in Australia, it is best if you know the relevant facts. According to the Australian Bureau of Statistics, less than forty per cent of small businesses continue their operations after the first three years from their startup date. The remaining 60 per cent close shops. Nevertheless, this should not stop you from pursuing your entrepreneurial dreams.
If you have the motivation, passion, and the vision, then you already have what it takes to be a good business owner. However, the success of your business will not be dependent solely on your passion; you should also have enough money to finance the birth of your business. Funding for your business can come from you or any other external sources such as Aquamore finance. Here are the possible sources of how you can fund your business.
Self-Financing. The best way to fund your startup is by supporting it yourself. When you shell out your own money, you do not have to answer to anybody if your venture does not pan out. You may get the funding you need from your savings, retirement options, applying for personal bank loans, and getting cash advances from credit cards.
Friends and Family. If you do not have a good credit score or your piggy bank is not large enough, you can always encourage your friends and family members to help you in funding your startup. Friends and family may be less demanding in the repayments terms and may give you very minimal or no interest at all for the loan.
Angel Investors. If you have watched an episode of Shark Tank, you can see startup business owners pitching their business ideas to sharks. These sharks in the show are examples of angel investors. Angel investors are wealthy individuals who like to invest in startup businesses in exchange for equity shares of the company.
Venture Capitals. You can fund your startup business by seeking out venture capital firms. Venture capital corporations invest in startup businesses for exchange in equity stakes in the company. Most business owners seek the help of venture capitals when their initial funding is not enough for their business’s day-to-day operations.
Venture capital firms are very selective in their investments. Therefore, they only give funding to small businesses that are already established or have shown potential for explosive growth in their selected niche.
When asking venture capitals for funding, you should be prepared to give them your detailed business plans, including contingency plans for any possible risks or worse-case scenarios that your business may encounter. It is wise to trail the help of venture capital firms only if you have an established client base and have a solid plan for expansion.
Unless you have a million dollars just lying around, funding to launch your new small business will require thoughtful planning and effort. As a startup business owner, you must determine the different benefits and downsides of each available funding options for you so that you can get the funds that you need with the most excellent flexibility and at the least cost.
It is better to not limit yourself with only choosing one funding option. You can obtain your funds from a mix of the available sources. You can still ask your friends and family for additional cash even if you already took out a personal loan from the bank, or already have an investment from a venture capital firm such as Aquamore finance. Remember that there will always be unexpected events and expenses when starting up a new business so always keep funds available.