“Eureka!” exclaimed a guy on a bus, facing his friend. “I just got a brilliant startup business idea,” he shared with his companion. After the exclamation and detailed explanation, a graveyard silence and mournful look took over their faces; the beautiful idea just gave up the ghost.
This was a discussion between two friends in transit about an idea that could have significantly improved their livelihood, but it died on the bus. Why, you ask? The short-lived idea met its demise due to a lack of startup capital.
A startup without adequate capital is akin to having no idea at all. Just as the saying goes, “Money answers all things,” the same holds for your startup idea. The alarming rate at which startup businesses perish prematurely, especially within their first year, calls for an investigation.
Discovering the antidote for this cancer that has been responsible for these sudden deaths is highly imperative. Your idea may be an e-commerce business, a SaaS business, or a tech innovation.
Are you eager to learn the best ways to secure the necessary funds to fuel your startup business? Join us as we unveil strategies to tap into funds you never knew you had.
8 Ways to Generate Revenue for Your Startup Business
We understand that you’re on the edge of your seat, eyes glued to your computers, eagerly awaiting information on how and where to get the money to fund your startup business ideas. Not to worry, let’s get started!
#1. Develop a Convincing Business Plan
Failure to plan is a giant stride towards failing. Your startup business plan is your documented vision, serving as the manual that guides your mission to avoid being a grounded entrepreneur.
A well-structured startup business plan is the key to all the other strategies we’ll discuss later. The major industries you see today are the products of well-structured business plans. Writing a startup business plan may require hiring an expert, or you can take your time to put one together yourself.
A well-structured and detailed startup business plan can win anybody’s heart and get you the funding you need to bring your startup business to life. Also, note that banks rarely provide loans to startups without achievable plans.
It emphasizes the importance of having a structured, detailed, and achievable startup business plan to conquer the startup funding challenge.
#2. Save Up!
The greatest mishap you can encounter when starting your business can be self-inflicted. Remember, you’re the first beneficiary of your preparedness, in case you didn’t save. One key thing you must do is save up.
You are the only one who understands the value of your dreams; let this spur you to save. Saving up showcases your determination and can influence people around you to help. Funding your startup business provides a positive drive, instilling a sense of belonging and a refusal to quit in the face of trials.
Successful business owners often sacrifice sleep to safeguard their hard-earned investments. The influence of self-savings could be the fund your startup business needs to break its limits, so save up to preserve that dream business of yours.
Ensure that you save more money as you earn. One of the major ways to earn more money is to try some online earning platforms. Another major way is online stock investment, so as you begin to get your returns, you can invest them in your startup.
#3. Crowdfunding
Wondering how some startups secure a ridiculously high amount of money before or just after starting? Most of them raise funds from people who believe in their dreams through crowdfunding.
Essentially, crowdfunding involves pitching to people with money to spare. Many individuals donate small amounts, creating a pool from which you can draw. In most cases, there’s no need to report back to them.
To secure crowdfunding, ensure you have a workable startup business plan. Another secret is to align your startup business with one of the Sustainable Development Goals, making your crowdfunding pitch more appealing.
The only challenge you might face is competing proposals with similar ideas, emphasizing the need for a well-structured and convincing proposal.
#4. Business Incubators and Accelerators
Accessing funds for your startup has never been easier than through business accelerators and incubators. Business accelerators help fast-track your business, while incubators nurture it.
You gain access to free mentoring from investors, and networking becomes more accessible. The only challenge here may be your dedication. If you can commit unwaveringly to your startup business, you can be confident that it will thrive.
#5. Presale Advertisements
This fundraising model is familiar, as some big brands like Apple and Samsung have adopted it. They advertise their new product, and people make orders before the official launch.
This method helps establish trust with prospective clients, allowing you to display what you intend to offer. If you are convincing enough, be ready to secure the funds needed for your startup business.
#6. Contests and Competitions
Every day, numerous business pitch competitions arise. All you need to do is present and discuss your startup business plan. Meeting the judges’ demands can lead to winning funds.
Competitions such as the Tony Elumelu Foundation Competition and various 2024 tech hackathons require your startup business to address a societal need, indicating a market for your product. A well-structured business plan can secure funds through this avenue.
#7. Angel Investors
From the name and the mode of operation, you cannot help but believe in the existence of angels. Angel investors fund your start-up business in exchange for equity or convertible debts. The convertible debts are to be paid back with a percentage increase after an agreed number of years. It will surprise you that many companies, like Yahoo and Google, started with the investments of angels. A particular attribute that convinces angel investors is signs and pointers to growth in your business.
It implies that your business plan has to have detailed expansion and exit plans.
#8. Government
#8. Don’t Ever Start Your Business With Loans!!!
You might wonder why loans were not mentioned. Sourcing funds through bank loans is not advisable for starting a business. Most banks will not entertain you if you fail to meet deadlines, and loan interest rates can be overwhelming.
We strongly advise against considering any form of loan as a capital source for your startup business.
Bottom line
Your startup ideas can come alive. All you need to do is create a compelling startup business plan and choose from the stated options. Be diligent, as diligence is another form of capital. Then you can breathe life into that dying startup business idea of yours.
Frequently Asked Questions About How to Fund Your Business Ideas in 2024
Getting funds for your startup ideas will make you confused. It is normal if you have questions to clarify your doubts and confusion. Here are a few of the popular queries about raising funds for your business ideas in 2024:
Are Government Funding Options Available For Startups?
Yes, there are government startup funding options. The bad thing about government funds is the bureaucracy involved in accessing the funds. You stand the risk of delay or not starting at all if you depend on the government for your startup funds.
In some cases, some government business interventions don’t come directly from the federal purse. It mostly comes through the local and state authorities. So, you should know where you can look if you plan to take this path.
Can You Get Funding With Just an Idea?
Yes, you can get funding with just your startup idea. Angel investors are some of those who can pick up interest in your ideas. You can also get your startup business ideas funded by participating in pitch competitions and other government programs.
What kind of idea can I seek funding to start?
You can seek funding for all kinds of businesses. Once your idea is marketable and profitable, you can be certain that you’ll get funding. Your ideas may revolve around tech business, e-commerce business, or SaaS business, ensure that your idea is solving a consumer pain point. With this, you can be sure to get funds for your startup.
Which incubator Programs can I apply for as a startup?
There are more than 1000 incubator programs you can get yourself into. An incubator/venture capitalist who has a standing history of birthing so many businesses is Y Combinator.
There are many others; you may need to search for all of them yourself and make a choice of the one that best suits you.
