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How to raise funds for your start-up business?

Raising funds for a start-up business venture is definitely a challenging task, especially in the economic crisis times. It can be one of the major obstacles for all the budding entrepreneurs who want to make it big. But, nothing is impossible in this world. And, so you should always try. Isn’t it?

There are many aspects a budding entrepreneur should consider so that they can meet the prospective investors and also raise funds for their business. Here are some steps you need to follow which can help you raise funds for your start-up business.

Step 1

Meet As Many Investors As Possible

When it comes to the investors, there are mainly three kinds of people who will invest their money in your start-up business: professional investors, investors who are your friends and hobby angels. Friendly investors are people who are your friends i.e. you know them personally. Hobby angels are also a kind of investors who have some money to invest in your business.

Now, the third kind of investors is Professional investors i.e. banks, financial institutions or venture capitalists. Convincing the professional investors to invest money in your business is definitely a difficult task. They will take time to understand the objective of your business and then decide whether they should invest in it or not. Therefore, you should make sure to come up with a business idea that your investor will like.


Make A List Of Prospects

Do a little bit of research on your professional network to get a list of people who will be interested in your business. If this people are interested in your business, the next task is to expand your list and add prospects. You should keep track of all the contacts, meetings and results after each meeting. Always be in touch with your prospects.

Step 3

Decide On A Specific Date

Thirdly, you should determine a specific date to collect the funds from all your investors. If you are dealing with friendly investors then you should make sure to get the funds as soon as possible. Also, you should discuss about the possibilities of profit from the business.

In case, if the business doesn’t work, you should let them know how you will return the money. If the people who are investing are close to you, then you should be clear about everything so that you can maintain a happy and healthy relationship with them.

Step 4

The “Middle Men” Theory Works

Third- party groups can offer a lot of benefits. They not only help the budding entrepreneurs to connect with the established investors, but also give some great tips to run your start-up business. You can also connect with the investors on the social networking sites. However, you should be very clear about your business objectives and have confidence to run your business successfully.


Never ever share your business ideas with anyone. Before posting your business idea online, you should make sure that you have created a strong brand voice so that you get customers for your business.

Good luck!

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