In recent times, the world’s leading economies appear to have developed genuine resolve in the face of financial crisis. This renewed sense of resilience first emerged in the wake of the Great Recession, when Wall Street traders continued to maintain a positive outlook even as the U.S. economy edged towards the so-called fiscal cliff. This is a trend that has been repeated across the globe, as business-owners and consumer continue to defy the prevailing economic climate by spending with unbridled confidence.
This trend is also prevalent in the UK economy at present, as businesses continue to respond positively to the unique challenges posed by Brexit. More specifically, UK business confidence rose to its highest level in 15 months during December, as the British economy continued to maintain a robust performance that defied most economists’ forecasts. The precise level increased from 98.0 to 102.2 in the four weeks during December, providing the sharpest recorded rise since the year of 2009.
How to Capitalise on This Sentiment to Fund Your Start-up
Not only is this robust level of sentiment good news for existing ventures, but it will also encourage new start-ups to the marketplace. In fact, now may well represent the ideal time to launch a brand-new business venture, so long as you are able to think creatively and seek out funding options that strike the perfect balance between risk and reward.
With this in mind, here are three innovative funding methods that will enable you to fund your start-up in the current climate: –
1. Consider Product Pre-sales and Affiliate Partnerships
The process of funding a start-up venture may be easier for product-orientated brands, as they have tangible assets that can be easily marketed and sold to consumers. Even with minimal, initial resources and a small inventory, you can drive product pre-sales, generate working capital and raise considerable brand (or range) awareness.
So if you do have relatively low-cost products to sell, how do you go about securing pre-sales? There are two primary options available to entrepreneurs, with the first being to sell formative products through your own, branded website. This provides a quick and profitable route to market, while it also has the advantage of driving traffic and awareness to core landing pages.
For new brands, however, this alone may not be enough to drive pre-sales in volume. In this instance, you may be better served by seeking out affiliate partners and websites who can sell products on behalf of your business, in exchange for a fixed, minimal commission fee per transaction (usually in the region of between 5% and 10% depending on each items’ value).
This has the dual benefit of raising additional revenue through increased sales, while also increasing the level of exposure afforded to your brand and product ranges.
2. Increase Your Personal Wealth
If you are truly starting from scratch with no viable resources, assets or products to sell, however, you will need to think a little more creatively if you are to generate funds.
In this instances, one of your best options is to consider building a personal store of wealth, which can subsequently be reinvested to fund your venture. This capital should be generated in addition your existing income stream, as this ensures that you can effectively fund the establishment and growth of your venture without compromising on your lifestyle.
With this in mind, the question that remains is how should you look to build your individual wealth? Given the presence of online trading brokers such as Hantec FX and the access that they now provide to a wealth of diverse financial markets, your best bet may well be to develop a trading portfolio that can deliver regular returns.
So long as you create a diverse portfolio that is developed in line with your budget and appetite for risk, you can quickly generate income that can then be reinvested into your business. If you remain unsure, consider opening a managed portfolio that relies on the expertise of experienced traders, as this can reduce your risk an potential drive higher returns.
3. Seek Out Equity Crowdfunders
If you hope to establish a serious start-up venture, the notion of traditional crowdfunding may not appeal to you. After all, this process is synonymous with relatively small-scale investors who are loathe to commit heavily to listed ventures, thanks primarily to the presence of simple rewards and high levels of risk.
This has changed in recent times, however, with the emergence of equity crowdfunding. This is a variation of traditional crowdfunding, and one that adopts the more familiar investment model of offering equity stakes in exchange for funding. Although this may not seem like a preferable option to start-ups, it enables brands to attract more serious investors while also attributing an estimated financial value to your proposition.
If you do follow this course, be sure to establish a fair and realistic valuation that offers value to investors. Additionally, be sure to present your proposition in a comprehensive and easy to understand manner which engages interested parties.
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