Throughout this article, we will discuss different funding options while taking a quick look at the bigger picture.

Financing options are solely dependent on what sort of business you run. Your business’ team, market value, market opportunities, overall performance, position, age, etc., are incredibly crucial. Therefore, to acquire decent funds, you will have to customize your approach and your funding search. Don’t waste your precious time in search of a phony sort of financing.

Get Familiarized with the Realities of Obtaining Funding

Let’s start with a fast reality check. A lot about business financing is heavily dependent on some specific minute-yet-powerful details. Realities go case by case, depending on the resources, growth stage, and several other components. 

Are you an ongoing business or a startup?

The outlook for funding depends mainly on certain specifics of a business. For instance, most ongoing businesses have unrestricted access to traditional business loans from a standard bank that wouldn’t be available to startups. Moreover, all the high potential tech startups have access to investment funding that wouldn’t be available to establish stable businesses that only demonstrate slow growth.

Figure Out How Much Funding is Needed

Each business has distinct requirements, and there is no financial solution that suits businesses of all kinds. Your business’ vision and personal financial situation will form the financial future of your business.

Once you figure out how much funding you’ll need, spend a little time figuring out how to get it. Some viable options are:

• Loans
• Investors
• Self-funding

Fund your business yourself with self-funding

To support your business, self-funding allows you to leverage your financial resources. Self-funding can come in the shape of going to friends and family for capital or utilizing your savings accounts.

Through self-funding, you will be able to keep complete control over the business; however, you also take on all the risk by yourself. So, act smart and don’t spend lavishly. 

Get venture capital from investors

Investors can provide you all the funding you need to kick-start your business in the shape of venture capital investments. These investments are usually provided in exchange for an active role or an ownership share in the business. It is different from standard financing in numerous ways. Venture capital usually:

• Has a broader investment horizon than usual financing.
• Takes more significant risks in exchange for high returns.
• Concentrates on high-growth companies.

Almost all of the venture capitalists would ask for a seat on the board of directors. Therefore, be prepared to give up some part of your business ownership and control in exchange for funding.

How to get venture capital funding?

Though there is no 100% guaranteed way of obtaining venture capital funding; however, it requires you to follow some fundamental steps.

Look for an Investor

Find venture capital firms — at times called “individual investors” — or angel investors. Ensure you conduct thorough background research to identify if the investor is reputable and has relevant experience working with startup businesses.

Share your business plan

You would be asked to share your business plan with the investor, who will further review it to ensure it matches the investing criteria. The majority of the investment funds focus on a geographic area or industry.

Go through due diligence review.

In case an investor is interested in funding you, he will have a detailed look at your business’ financial statements, corporate governance documents, services, and products, market, and management team.

Decide the Terms

The next step of the process is to agree on a term sheet that briefly defines the fund’s terms & conditions to invest. 

Acquire a small business loan

If you would like to retain complete control of your company, but don’t have adequate funds to kick-off the proceedings, think of getting a small business loan.

To boost your chances of attaining a loan, you must have an expense sheet, a solid business plan, and financial projections for the upcoming five years. These tools will help you get a rough estimate of how much you’ll need while also helping the bank understand that they’re making the right move by giving you a loan.

Once you are ready with all the materials mentioned above, start contacting credit unions and banks to request a loan. You will have to compare offers to get the best possible terms & conditions for your loan.

Alternatively, you can even connect with us at Lebit Finance directly. We’re specialized in financially facilitating small business owners through our paycheck protection programs which are SBA approved. 

Locate lenders who provide SBA-guaranteed loans 

In case you are having trouble acquiring an ordinary business loan, take a look at SBA-guaranteed loans. If a bank considers your business too risky to lend money to, SBA could be your only way out. 

Small Business Administration investment programs

Small Business Investment Company (SBIC)

SBICs are privately managed and owned investment funds regulated and licensed by the SBA. They utilize their capital, plus funds borrowed under SBA guarantee, to make debt and equity investments in qualifying small businesses. 

Small Business Innovation Research (SBIR) program

The small business innovation research program invites small businesses to get involved in federal research and development that possesses commercialization potential. 

The post Entrepreneurship Financing: Navigating Between Investors, Lenders, and Banks appeared first on Lebit Finance.

If your business has faced the ramifications of lockdown and is barely hanging on by a thread, here are some tips that can help you survive the changing tide. 

1. Evaluate Your Marketing Strategy

During times of economic crisis, small businesses often consider cutting down marketing costs to offset losses and decreased profits. This is an unwise move as marketing strategies are key to a company’s survival in the digital realm. A smart marketing and advertising approach equips you to convert the target audience into customers and existing customers into your brand’s loyal consumers.

Impactful marketing campaigns are aligned with consumers’ buying behaviors and require adjusting as market trends, and consumer behaviors change. For instance, you should utilize social media marketing tools to connect with the audience.

If you don’t have the expertise to manage social media, consider hiring a social media manager that can help you design campaigns that attract potential consumers. Moreover, if you have a website, this the ideal time to optimize your website. Invest time and resources in producing SEO content, which can help your website rank higher on Google.

2. Focus on Your Competitors

The competition is always there, but things become tougher during times of crisis. Since the consumers do not have enough to spend, they are unwilling to take chances and either buy products they’re familiar with or ones that come with a minimum price tag. You should be aware of who your main competitors are what they are doing to sell their products. Find out how they are marketing their products and emulate their tactics.

Failure to improvise during such times and the inability to prove yourself can quickly make the customer lose interest in you. Apart from designing an effective marketing strategy, you should also learn to anticipate your competitor’s next move and acclimate accordingly.

3. Build Trust and Connect with The Consumers

Engage with customers at an interpersonal level to build trusting relationships. This is crucial for retaining customer loyalty. Your audience should see you as more than just a brand or a business trying to earn a quick buck.

Advocacy for social causes and causes your audience cares about is one of the best ways to establish your value. You can run social campaigns and ask the audience to volunteer and support you in the cause. For instance, you can conduct food drives for underprivileged people or dedicate a certain amount of company profits to charities.

4. Don’t Compromise on The Quality

Understand that the customers are the main stakeholders of your business, and you must satisfy their needs at all times. Unfortunately, many business owners hoping to improve profit margins sacrifice the product’s quality during challenging times and end up losing customers’ trust.

Do not use cheaper material in production or employ strategies that might affect your product or services’ overall quality. Instead, communicate with your audience to relay that the business is going through difficult times, and you need their support to maintain services. Your willingness to compromise on profits in the short-term will pave the way for a long-term stay in the market.

5. Seek Support 

Analyze your financial situation and see if you have enough resources to survive. Ask yourself important questions and come up with honest answers. Can you stay in the market even if you suffer loss for some time? Do you have a backup? How long can you survive without going bankrupt?

If you don’t have enough resources, you must consider finding support before it is too late. Start looking for alternative ways to secure finances. Consider taking out a loan or find private investors willing to work with you.

Conclusion

Protecting your business during an economic crisis can be a very challenging task, but readiness and desire to survive can save your company from financial collapse. And remember that all businesses are different, and there are no set rules to follow for survival. 

The post 5 Ways to Help Your Startup Survive Hard Economic Times appeared first on Lebit Finance.

Did you know that the initial stage is when you should opt for a steady flow of funds?

Importance of funding

The external capital makes life easier for you and helps your business grow without too many challenges. In this highly competitive world, it is vital to invest in high-quality products, cut-throat employees, advanced technology, and an effective marketing strategy to meet the high standards.

Funding is essential for your startup because of startup costs, which leads to innovative development. With skilled workers and a competitive environment, more employment opportunities are creative. A good company that is paying well also motivates its’ employees who perform at their best. The creation of viable solutions and new ideas eventually leads to Excellency as it adds value to your firm. When you get funding, you can also invest in development and create more job opportunities. In a way, your company will be serving the country’s economy with more job creation and capital generation.

Moreover, with high-quality products and services, your clients and customers will be satisfied throughout. This boosts sales and improves customer relationships as your demand increases. Over time, you will also be able to expand your business as your profit increases. Funding also improves the Research and Development sectors of a firm, and without risk capital, it cannot progress.

Smart Investment

You don’t just need investment; you need smart investment. Smart Money is how investors make strategic decisions. According to the Financial Times, the most intelligent and the most successful investor is the one who is observant of the opportunities and is ready to grab those opportunities before anyone else has the chance to do so. These investors always pick the right moment to invest and sell their assets, leading others to follow them. Most of these investors also invest in small businesses or startups such as shops, restaurants, salons, and many more.

A smart investor can definitely take your business to the next level. When they see the potential for growth in your business, they often provide a complete picture with a cost-benefit analysis of your business. By gaining insights from these investors, you can focus on a strategic plan that can smoothly flow your business. A good investor not only provides funding but also brings in prospective clients, increases engagement, and they can also build you some links and networking. Moreover, they can help you in hiring competent employees because now your goals align with theirs.  Lebit Finance can provide you with a smart investment that will transform your business with strong leadership, strategy, and proper execution.

Growth

To implement and create your product through your ideas, you need adequate funding. A reliable product is made through finances as you need to hire more people, invest in technology, and cater startup costs to transition smoothly to a development phase.

Engagement

To increase engagement and boost sales, proper marketing strategies are essential. This will eventually increase your demand as the cash flows into your business. A design like this will not only attract customers, but it will create quickly create a brand name and build a reputation.

Expansion

With more funding, you can quickly expand your business. When customers see progress and growth, they are automatically attracted to your products.

Working Capital

For stable financial health, working capital is vital. The future of your company can be damaged with insufficient funds. It is wise to apply for working capital because it can direct your firm towards its’ full growth. Loans and funding programs can fulfill these needs.

Assets

Machinery and vehicles are necessary for sales and business. With the increasing costs, you can cater to your loan’s sales cost and help your business grow. Fixed monthly repayments and loan terms can provide you with advanced cash flows so that you don’t have anything holding you back from growing.

Invoice

Cash is a requirement for a successful business. Along with a plan and an effective strategy, Money is a basic necessity for your business. It is necessary to ensure that all the invoices are paid promptly from bills to your order books. Cash is king, and for a good reason — namely, you can’t pay your bills with your orders book. With funds, you can pay promptly and keep in check with your liquidity.

Are you ready to fund your start-up?

According to Hiscox, around 80% of the businesses fail in the first two years. If you have long term plans and can see the growth perspective, it is better to have investment options open. At Lebit Finance, we believe in small business and understand why they need investment. Our services include instant cash facilities such as Merchant Cash Advance, Invoice Factoring, Business Line of Credit, Equipment Financing, Business Term Loans, and Small Business Administration loans to cater to all your needs. Small business financing has never been more accessible. Discover a variety of options based on your needs. It’s easy, secure, and free. 

Many companies fail to generate sufficient funds for their business because of the competition in the market. However, Lebit Finance can help a small business without any hassle. Without monetizing your business, you are risking failure. With Money and time being finite, they must be allocated efficiently. Often, firms run out of cash because of poor decisions such as failure to market their products to the customers. Despite trying multiple ways to raise Money, it cannot be easy to get additional investors’ funding. However, when you have investors investing at the right time, monetizing becomes easy, and there is a chance that you will not run out of Money.

The post Why You Need to Fund Your Start-up At The Right Moment appeared first on Lebit Finance.