Now that your business idea is no longer just a brilliant plan, it’s time for you bring it to life. Simple right? Well, not really.
First and foremost, your business needs funding to come to reality; as an entrepreneur, you may find yourself asking yourself this question the most – How do I get enough money to start my business?
Fret not, because here’s not one, but five methods you can use to raise funds for your business needs.
You’re confident that your business will impress, so put it to good use. Through crowdfunding campaigns, you pitch your business plan to the public, set a funding target, and let your product or service impress by proving to be an improvement in its space. Crowdfunding tests the waters and engage consumer interest in your product or service.
Make sure to know the people you’re pitching to and to speak in their language as well, ensuring you capture their imagination while at it. After all, what better way to tell a story then to let the audience tell it to themselves.
Some crowdfunding platforms available in Malaysia are:
- Ethis Ventures
2) Angel Investors
An angel in disguise, angel investors are businesspeople that provide financial backing to companies they think will prosper in the future. In return, these angels are expected to have a share of the financial rewards of companies they invest in.
You’ve got to be where they are at in order to spark the relationship. Events have been the go-to place for this, but the digital age has since propelled these “angels” to be more anonymous for most of it. However, with the right tools and platforms, you can set up meetings and pitch ideas to them in the digital world.
Ways to connect with an angel investor is through:
- Angel Investment Network
- Cradle Fund
3) Government Grants
The top choice for many, government loans are rightfully so as they don’t require a guarantor or collateral, have no profit rate and don’t impose a processing fee since the government champions innovation and entrepreneurship. Among the many resources provided by the government are:
- Yayasan Penjaja dan Peniaga Kecil 1Malaysia
- MyCreative Ventures
- Skim Pembangunan Francais
- Cradle Fund Sdn Bhd
- SME Bank
4) Venture Capital
In the venture capital system, a third party will act as a partial owner of the company.
A partnership has to be a win-win situation and that’s the idea you selling after your big real idea. A business plan is the foundation to creating all those possibilities and needs the most time and passion to create. Clarify your steps from start to finish in order to help your partner picture the activities that need the funding.
To get the right venture capital for your business, ask yourself the right questions in regard to your business value, growth, because venture capitals are only interested in exponential growth and it’s best to switch funding sources if you don’t see yourself offering what they want.
Typically, venture capitalists have the majority shares of ownership and a few of those available are:
- RHL Ventures
- TBV Capital
- 500 Start-ups
- Vertex Ventures
- Spiral Ventures
5) Business Loans
If your credit score is up to par, consider getting a business loan. You should have a business plan, expense sheet, and financial projections for the next five years as it will give you an idea of how much you’ll need to ask for. This will also help the bank know they’re making a smart choice by giving you a loan.
It can be hard to apply for loans with a bad history, but it shouldn’t stop you from getting the funding. Merchant credit accounts, business cash advances, secured business credit cards, and some microloans are some of the products that are willing to work with imperfect profiles, but improving your credit still is the best way to get a loan at the end.
Here’s where Finsource Credit comes in; In search for a fresh new loan structure? Check out this 2 in 1 financing that combines a clean loan with a property loan!
Backed by the public listed Sunzen Biotech Bhd. and licensed under the provisions of the Malaysian Government Money Lenders Act 1951, we are committed to providing convenient, efficient and attainable financing solutions to SMEs that are currently underserved by banking institutions.
Our loan advisors are ready for your questions 24/7, contact us today to learn more!
: 03-2712 4333