Category: Business

Best Ways to Fund a Startup

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startupIf you find that you have a great business idea, funding is nearly the next thing you will be trying to figure out. Every business that has grown to become successful such as Rosedale Tow Truck has struggled in one way or the other trying to figure out how to raise capital. There are many ways to fund your startup from self-funding to venture capital. Organizing the funding needed to start your business is among the most significant hurdles that every aspiring business owner must pass.

The business startup journey becomes very more difficult as aspiring business owners have to face the reality of being turned down for business loans. The good news about startup funding is that there are plenty of funding options for startups to turn to. Let us explore these options;

Friends and Family

Borrowing money from friends and family can be a classic way to start your business. It can be quite hard to convince banks or investors to believe in your business, but that is not always the case when it comes to friends and family. Friends and family can be very much willing to help in funding your company. If you are getting money in the form of a loan from them, you need to ensure that they get sound legal advice to put everything in order. The only downside of this method of funding is that it can be straightforward to lose friends if something doesn’t go as planned.

Bootstrapping your Business

startup fundTo succeed in your first business, you have to ensure that you get some saved up funds that you can easily access and put up in your business. With bootstrapping, you make use of your own funds to run your business. The money you use for bootstrapping may come from your personal savings, low-interest credit cards or your other lines of credit. The only major problem with bootstrapping is that if your business doesn’t succeed, you may be left with a substantially high amount of debt.

Small business loans

Some banks normally offer loans to small businesses. However, not that banks are historically very cautious offering loans to small companies, so it can be challenging to qualify. There are alternative lending or borrowing companies and institutions that you can equally use to get your business off the ground. The only downside of these lending institutions is that some can be very exploitative and predatory.


If you have an excellent business idea, and you are great with social media in getting people together, you can make use of crowdfunding. When crowdfunding, you can make use of sites such as Indiegogo and Kickstarter among other options. These sites can be an excellent source to help you pull funds together. The only downside with crowdfunding is that many companies are making use of this method, so you have to create much buzz on social media to stand out. Another technique you can use is an accelerator or an incubator. The good thing about incubators is the high level of mentorship involved.


Categories: Business

Most Safe Places to Keep Your Money

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savingNow that the stock market is not very certain due to sinking companies, the volatility of the economy, real estate bubble among other factors leading to fluctuation in the value of money, which are the best places to keep the money? You need to keep your money in a place that brings high returns. Such a place should be free from risk or have a very low risk.

If you’re looking to invest your hard-earned money, it can be overwhelming to decide where to put it. If you’re young, you are faced with a lot of challenges in determining where to invest your money and enjoy the profits for decades to come. When saving for retirement, stocks are the best option due to the high rate of return over an extended period. However, for short-term investments, where do you go?

If you are looking for the safest places to put your money, here are the top places you should consider.

Savings Account

Savings accounts are perhaps the most honest and most convenient place to put your money. These accounts are very liquid such that you can get money in or out whenever you want. The specific features defining a savings account include interest rates, account balances and the use of cards. In most cases, banks offer a meager interest that is not enough to keep up with the inflation which is mostly 0.06%. Some banks may let you open an account with as low as $1 which others require anywhere between $50 and $50,000 as minimum operating balance.

Money Markets

Just like savings accounts, money markets are safe and liquid accounts which allows you to store money up to a certain amount, mostly $250,000. A couple of aspects make money markets to be different from savings accounts. In money markets, the interest rate is a bit higher than a savings account. To operate these accounts, the minimum account balance can be anywhere between $1,000 and $25,000. There are a certain number of transactions you can make per month as per regulation.

Certificates of Deposits

A certificate of deposit refers to a fixed term loan that you make to your bank. With CDs, you agree with your bank to keep your money for a specified time, it could be six months, one year or three years, in exchange of an agreed-upon interest rate that is guaranteed when the certificate of interest matures. CDs are insured, and this means you can’t lose your money. The key downside of CDs is that it ties down your money for a specified period. Though it is possible to withdraw it before maturity, you will pay the price for that.

Low-Risk Investments

The downside of low-risk investments is that the interest rate is quite low. But all in all, you don’t want to put all your vital eggs in one basket. Some of the best low-risk investments include; treasury securities – which are loans that you give to the government including treasury bills, treasury notes, and treasury bonds. Treasury bills take weeks to a year to mature. Treasury notes are medium and may take 2 to 10 years to mature while treasury bond is long term and may take up to 30 years to mature with interests paid every six months.

Categories: Business

Ways to Get Investors for Your Business

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fundingWhen you have a viable business idea and you know the amount of funding needed to get you off the ground, the next step is to find investors. Finding investors can be intimidating and a scary route, but its the best path you can follow to achieve success. You have to understand that business plans do not generate business financing. Though there are many kinds of financing options that require a business plan, the truth is that nobody invests in a business plan. Investors need a business plan because it is a document that communicates information, ideas, and projections, but they invest in a company, its products, and people.

When you are in search for the right investor, here are some aspects you must get right.

Realistic Budget

Create a realistic budget that can help you gain traction. Investors see great companies as those with a proven traction and customer delivery. You will need to have a budget to get your first customers. Once you have reached a particular milestone, it’s time to look for investors. As a CEO of your company, you may dedicate up to six months pitching to the right investors. Have a budget on what it will cost you regarding traveling and other expenses.

Use Startup Launch Platforms

investorMany companies have now launched specific platforms that provide research, information, and assistance in all aspects of getting a business began including the best ways to connect with the right investors. These startup guide companies, otherwise known as incubators provide extraordinary opportunities to help many people get connected to the right investors.

Angel Investors

You can find angel investors who are willing to invest in your startup. These angel investors are not only willing to invest in your startup but are also ready to sit on your shoulder to offer you mentorship and a lot of solid advice. They also provide you access to their network of contacts. There are so many online platforms where you can find angel investors who can give you a lot of information on the different types of investments you might seek.


There are hundreds of crowdfunding websites and platforms that can help startups grow. These sites provide you access to different types of investors from the general public who are willing to take part in your startup to philanthropists who have an interest in helping others realize their dream. Each crowdfunding platform has their focus and a way of attracting investors. All you need to do is to study them keenly and see which the right one for you is.

Categories: Business