It is a sad and unfortunate truth the large majority of new businesses fail within the first 3 years, some 56% in fact and of those who make it last the 3 year mark, a further 48% will collapse by year 5. This is a sobering thought for anyone who wants to get started in business and whilst it can appear scary, it is much better to simply view it as a benchmark for avoiding failure.
The chief reason why most of these companies fail is the consequence of finances, in the main it is the fault of mismanagement of finances but there are also many who fail because they do not have enough money. If you want to go into businesses and make it a success like Lloyd Claycomb, then you can learn from the lessons of the past and ensure that your finances are managed correctly, you can also put the work in now to secure funding for your business, and here’s how.
Investment
thanks to the success of so many start-ups, a lot of investors have been trying to get in on the act by helping to fund brand new business. This type of investment is called angle investment and if you think that you have a solid business idea which could go on to make a lot of money, then these are the people who want to hear from you. In order to secure an investment you need to convince these men and women that you not only have a great business idea but also that you, yourself are investable. Make sure that you have a great idea and a watertight business model.
The Government
Believe it or not, there are many grants and funds out there which are offered by the government to help start-ups to get off the ground. New business helps out the economy in many ways thanks to its job creation and its ability to make money and so they have set up several private funds which you can apply for in order to give your funding efforts a boost. It is unlikely that you will pay these funds back but don’t bank on being able to launch with these funds alone, the government wants to help, it doesn’t want to do it all for you.
Bank Loan
Banks have been handing out loans to new businesses for years and they are still one of the most reliable ways to get funding for your start-up. Banks will offer sizable loans at fair rates and they will also support you as best as they can in order for you to succeed. It is important to remember that success for you also means success for the bank and they will help you in numerous ways in order to get off the ground and manage your finances well.