Launching your company is no easy task, but after the initial success, running and expanding your company isn’t easy either. If you have had initial success and you want to introduce a new product, how do you finance it?
There are several possibilities of finding financial help and DotCom Capital is here to break them down for you.
You can finance it yourself
If you have enough financial resources, the easiest thing might be to finance your new product yourself. It’s great when you don’t have to depend on anyone and this gives you freedom every step of the way. However, there are downsides to this too. First of all, there are very few young entrepreneurs who have this much money early on. Even if you do have money, you might find yourself stranded later if you invest all you have and the project fails to gain momentum. This is why everyone could consider other options as well.
You can get a loan from a bank
This is classic, at times of need, you can go to the bank and demand a loan. Unfortunately, this popular financial aid takes a lot of time and a lot of energy. You need to present a detailed business plan to the bank, give them your credit info and wait for several weeks until you get your money. And you should be careful with the interest as you can end up repaying as much as 50% more than what you’ve received.
You can get financial help from online services
Services like Kasskreditten can be a great alternative to bank loans. They offer you a certain amount of money (the same as with smaller loans) and you chose the dynamics of repaying yourself. The interest rates are much more reasonable and the paperwork is minimal, which is why this can be a great option for financing your new product.
If all else fails, you can try to do a campaign on Kickstarter. Crowdfunding can be an amazing way of financing your company’s growth, but you need to remember it’s rules. You have to present a product with a very detailed campaign. You shouldn’t use crowdfunding in the same way you would use a loan. Your backers expect a product in return!
Angel investors are amazing and it can be the perfect way to finance your new product. If you have a strong idea, angel investors can help you make it a reality. However, angel investor will help you develop big projects, you shouldn’t look for them for small-scale improvements to your business.
Here are 5 ways to finance introducing your new product to the world. Learn about them, compare them and choose the perfect way to finance your new product. With the right idea and a good plan, you will find success in no time!