Business ideas require proper funding to ensure that there is a thriving business entry in a particular industry. If one has a great business idea, it is essential to have a proper vision for months and years considering the market research. An entrepreneur willing to quit a job for good due to a business idea has to find the available sources of funding for the achievement of set business targets. The lack of enough money lender should not be a reason to hold you back from starting up a business. Personal savings are never enough for an individual to start up a dream business that will provide improved profitability through increased sales of products or services. The following are four ways that business start-ups can be funded.
Crowdfunding has gained popularity in the recent when an individual is willing to start up or launch a product in a particular industry. Creative people identify the angel investors that are willing and able to assist with some money for business capital. Crowdfunding requires one to raise money from small masses until one acquires the amount necessary to launch the product or the project. The idea is highly efficient when one is willing to involve the money lenders that are willing to fund design or products ideas that are highly profitable in the market. The technique is highly useful in marketing when one is funded by prominent investors as the products are known even internationally before even launching to the market. Analysis of consumer feedback and interests is vital in gauging the product success of the targeted consumers. The feedback is also used by the entrepreneur to come up with attractive products that will be widely accepted in the market by meeting the public interest. The common crowdfunding websites are Indiegogo and Kickstarter that are aimed t assisting the business start-ups to achieve their dream. Kickstarter is limited to some country where Singapore is not among the country where the website operates to fund business. However, a Singaporean can get funded by Kickstarter if you have a partner for the eligible countries of the crowdfunding website.
The government of Singapore is highly supportive of small and medium enterprises through the offering of grants to individuals with business ideas. The Spring Singapore Ace grant is used to offer entrepreneurs with the required support for a proper flow of the economy. Spring Singapore is a government agency which matches S$7 for every S$3 raised by an individual. The entrepreneurs are funded by the government agency up to S$ 50000 where one is required to have raised S$ 21,429. The Spring Singapore offers mentorship programs to business starts ups to ensure that there is a sustainable business entry. There are several grants agencies locally depending on the industry of the business startup. The ComCare is used to offer to fund to social enterprises while the Spring Singapore focuses on clean and hi-tech companies. Entrepreneurs are required to identify the suitable local grant agency depending on the sector of the business. A thorough analysis of the grants available in Singapore is essential for a start-up dream through a substantial financial boost from the government.
Incubators and Accelerators
The incubators and accelerators are used to offer seed funding for a sustainable business entry by an entrepreneur. An accelerator offers a time frame which is usually weeks or months for an entrepreneur to work with mentors. The mentorship provides an individual to graduate after the stated time and acquire funding to start a successful business. An incubator aims at reaching out to the companies that are at the early stages of business for advice on increased performance. The programs are essential in acquiring seed funding for a successful business startup by an individual. The Angel Gate Advisory uses the incubator or accelerators to come up with the required resources and support to start a proper business. Many incubators and accelerators in Singapore are mainly for tech companies aimed at increasing innovation in the nation. The continuous development of technology requires an individual to come up with a business idea that is hi-tech for funding through incubators and accelerators in Singapore. Mentorship from other successful entrepreneurs in the market makes it possible for an individual to develop plans for a proper business startup in Singapore.
It is crucial for one to consider taking up a loan from friends, family or the bank for a proper business startup. The funding is a good option as it makes one have full control of the business by developing decisions that will increase the profitability of funding from money lenders. Loans are used by individuals that are not willing to offer equity to the investors for improved control of the business. Equity financing requires one to consult other investors in the business in coming up with plans for the business making loans the better option to equity. OCBC offers collateral-free loans to start up business to increase the number of entrepreneurs in the economy. OCBC Business First Loan is available for companies to even less than six months old up to $ 100,000. The funding is necessary for ensuring that there is a continuous development of business operations for the new business in the market. The entrepreneur is required to use a guarantor in acquiring the loan for business capital. An individual is required to consider if the loan is the appropriate technique to start up a business for untested products where the short term and medium term revenues are usually small. Personal loans are used by an individual to start up a business as it is quick and feasible. The Standard Chartered Cash One provides attractive interests and minimum income requirement when acquiring a personal loan. ANZ Money Line Term offers at an interest of 6.6% per annum with gifts such as Polar A300 Fitness worth S$ 259 or ASUS Pad worth S$ S$ 449 and Harvey Norman shopping voucher of S$ 50. The Singaporeans can start up dream business with the available funding options available in the nation. Business research is necessary for an individual to acquire grants and seed money which is highly profitable for the business. Bank loans are used in satisfying the business needs of business towards the achievement of the set objective in the business plan.