The Challanges of Start-Ups
Raw Space is a coworking space beneficial for start-up businesses. Entrepreneurship is an attractive idea, but there are many challenges to overcome. This week we will discuss starting-up a business, the obstacles that might arise and how to solve these issues.
How is it you intend to fund your business idea? If you can pay for it out of pocket, you are extremely fortunate, but so many do not have that luxury. But there are multiple methods available to raise the capital needed.
Perhaps the most obvious form of funding would be to take a bank loan. However, this method may be the most risky as there is no guarantee the loan will be granted, and then there is the matter of repaying the loan plus interest. New businesses tend not to make a profit within the first few years, so a bank loan adds a lot of pressure and stress.
In more recent years websites such as GoFundMe, YouCaring and KickStarter have cropped up, allowing people to crowd-fund their projects. How does it work? You simply login to the website, and make a post about your project. If it is a project selling products to the public, companies often offer different pledge tiers–the more people pledge, the more additional extras they earn. This is an effective way to persuade people to donate more to your project so you can fund it quickly and ensure your project is as high quality as you envision.
Angel investors are rich individuals who invest money in business ventures, though they don’t invest out of the goodness of their own heart. They will often ask for a cut of the profit or even part of the business itself. In order to attract an angel investor, pitch your project in a succinct manner, and demonstrate you have the know-how, experience and passion needed to run a business
Every business will run into this issue at the start. As a new business competing against the thousands already established, you business won’t have much of a foothold. You need to put yourself forward, and show the world what you have to offer.
Know your audience, and market your business towards them. Social media is a fantastic advertising platform. Social sites such as Twitter and Tumblr allow companies to purchase ad spaces on their website. Each platform has million of users, so word of your business is bound to garner interest.
Use Your Community:
There is no harm in starting small and getting local folk talking. Sponsor charity runs, leave business cards or flyers in local stores. Charity shops are more often than not happy to host flyers and leaflets for small businesses and events. Though you might not notice the difference immediately, even a couple of interested people can make all the difference in the world down the line.
Building up relationships is hugely beneficial especially as a start-up. Don’t be afraid to out yourself out there and shake some hands. Linkedin is a great place to start, as many other business have an account, presenting perfect opportunities to build up a network.