How To Get Start-Up Funding: Build a Website, Set Up a Business Plan & More

Raising the capital to start up a business is not an easy job, how much you need depends on which type of business you are going to start. If you’re starting up a business which needs lots of equipment, office or industrial space, as well as manpower you may need to seek out funding just to get up and running. Here are some tips on how to accomplish that.

Build a Website Showcasing your Product/Service

If you want to attract investors, they are going to want to know what your business is before they will even take a meeting with you. A good way to approach people is to send them the link to your website, you don’t have to put your full business plan online (in fact I probably wouldn’t!) but you can give an overview of the product or service, what you believe the target market is, and what you have discovered from any market research you may have done. To do this as leanly as possible, make sure you are taking advantage of promotional pricing. For example, there is a 5-year promotion that will net you some excellent savings on your hosting and domain name.

godaddy 5 year promotion

Your Best Investor: You

There are many ways that you personally can raise capital to start a business. You can draw upon your personal savings or savings from your partner’s income, including salaries and commissions. While you are still working at a job and building your business plan it’s a great idea to start putting money aside using and Automatic Savings Plan or ASP. That way when you are ready to start on your business full time you will have a bit of a nest egg saved up.

You could also cash in some investments and pensions, but be careful that you aren’t putting absolutely everything you’ve got on an untested idea. Depending on your business, you can lower startup costs by leasing necessary equipment instead of buying it outright. There are also credit cards and taking out a home equity loan, but again use these with caution. If you do not know that you will be able to pay the money back then you should probably not do it.

Equity Investment

If you are comfortable with taking on partners, equity investment is also a good way to raise money. Just be aware that an equity investor becomes involved with the business making decisions and operations, so it needs to be somebody that you are comfortable working with. Because they get a larger return on investment if the business does well, they have a vested interest in seeing it do so but you will not have sole control of your company. If you are more of a ‘lone wolf’ type, then this sort of arrangement may not work for you.

Small Business Loans

Depending on where you live, there are likely a variety of small business loans available from banks or government institutions. If you are part of a minority group, you may qualify for loan programs that other businesses would not. For these types of loans the application process is typically arduous, sometimes even more so than applying for a mortgage. They are going to want to see a business plan including how and when you project being able to repay the loan as well as solid market research. They aren’t going to just hand over a large sum of money to anybody who asks. However, as these loans are designed to give small businesses a leg up if you do end up qualifying for one they typically have much more favourable repayment terms and interest rates than say a credit card or home equity loan. But make sure you read the fine print and ask questions before you sign any contracts.

Find out your credit score

Before you start applying for loans and financing it’s definitely advisable to look into your credit rating and make sure that you would qualify. If you already have a low credit score and are rejected for further requests for financing it can reflect negatively on your credit report.

If your score isn’t currently high enough, don’t give up. Credit is fixable, it may take a little while but it will be worth it to spend the time building it back up. That might mean you need to put your business plans on hold for a year or two, but if it’s something that you truly want to do then it will be worth the wait.

Develop a comprehensive business plan

As we already mentioned, any reputable lending organization will want to see a comprehensive business plan as part of a loan application from a start-up company. Make sure that your plan will offer a proper outline of short as well as long-term business objectives, they will want to see that you are planning ahead. You should not forget to offer details of research on your prospect of gaining revenues. In fact, the plan must provide information on the total amount of money you require, the tentative period when you expect to get a return on investment and so on.

Arrange the necessary paperwork

Just like applying for a home loan or other personal credit, you also need relevant financial documents or papers when you apply for this type of funding. You should plan to acquire relevant copies of last tax returns, three or four months of financial statements from banks as well as a relevant copy of the business license. Depending on the business you are trying to start, there may be additional requirements as well. You will likely be working with a loan officer who can advise you on what information you will need to provide, as well as who can help you out if your loan is initially rejected.

Starting a business can be a huge undertaking, but if it’s something that you feel called to do you will find a way to make it happen! Financing is often the biggest hurdle, but by following the steps above you can make the process a little smoother.

GoDaddy Promo Codes and 3 Other Essential Scaling Strategies

Up to 70 percent of start-up businesses fail within the first five year.

Most small businesses don’t fail because of a poor concept, a lack of contingency planning, or insufficient capital. They fail because they’re not ready to manage success. The most common reason is a business plan that doesn’t account for scaling up.

Scalability is about planning for success rather than only building contingencies against failure. Look at the resources and systems you’ll have in place to get started. Ask yourself how they will scale up once demand for your product or service increases beyond first projections. How will you manage supply if orders exceed your forecast production rate? How will you make your business more streamlined and efficient, save money, preserve quality, and expand?

There are three essential strategies start-ups and small businesses should focus on to make sure a profitable business can grow: cash flow efficiency, quality control, and project management. Your business plan should include forecasts of how you will manage these elements if your business is successful.

GoDaddy Promo Codes are a No-Brainer For Your Business

As a side note, we use to save money on our web hosting with GoDaddy, which is part of improving our cash flow.

Cash Flow Efficiency

godaddy promo code- scaling
The baseline need is cash flow efficiency. Constant monitoring of your business practices is essential to understand where you can make savings. While any start-up will need investors and credit to bankroll the project, the first aim should always be to clear the debt and make a return on investment. Ironing out any problems in your cash flow efficiency while you’re still a small operation will save you future headaches.

Your cash flow forecast should be under constant monitoring and revision. Forecasting capital and cash requirements at least six months in advance will help you to make better decisions about where to get the money. To be ready to scale up, you should always try to reinvest from internal resources before taking on more debt. Manage your cash flow well, and your systems will be healthy and effective to manage the future growth of your business. You may want to look into using software like Float or Pulse to help you achieve your cash flow goals.

Quality Control

If you’re offering a high-quality product or service, your business will probably do well. Unfortunately, quality is often the first thing to go if demand outstrips supply. Planning for unforeseen difficulties, business losses, and failure is wise, but it’s equally important to plan for success, which is only possible if you can sustain the quality of your product or service. Careful monitoring and continuous forward planning is the key.¬†

It’s natural to want to accept every client¬†when you’re just starting out. However, to scale effectively, you must be in control of the speed at which your business grows, even if that means admitting to potential clients that you’ve reached capacity for the time being. It’s better in the long term to scale up slowly, and keep quality high, than push your business beyond its limits and disappoint your customers.

Project Management

Careful project management strategies should be in place before you even open your doors to business. On Day One, you should begin monitoring every aspect of your operation, from sourcing materials to cash flow balance, as well as debt reduction, client acquisition, production or provision of goods and services, human resources and investor relations.Effective analysis and skilled project management will enable you to keep on top of every aspect of your business. Check out PC Mag’s roundup of the best project management software for 2017.

Being prepared to scale up takes a lot of extra work. But the time and effort you put in at the beginning will save you a lot of anxiety in the end. With these three essential scaling strategies of a successful business in place at the outset, you’re already primed for scaling up. Don’t let unexpected success be your downfall.