There are many different avenues you can take to fund your product process, marketing and overall business plan. You can either take traditional routes with investors and various sorts of lending, or you can go through the crowdfunding route. We will work with you either way to raise money and have individuals back your product. You can also combine each of these routes to fully fund your product. You can read more about each funding option below.
Traditional Lending is a loan that comes from a bank to start your venture. This is the traditional sort of lending you see when a company or product is being launched. These investment lenders will pull funds from depositors or various resources, and make them available as loans that acquire interest for your use. Innovaum will consult with you on whether you would like to take out a loan and from which bank.
An investor is “Neither a speculator (who takes on high risks for high rewards) nor a gambler (who takes on the risk of total loss for out of proportion rewards) but one whose primary objectives are preservation of the original investment, a steady income and capital appreciation,” according to the business Dictionary. Investors are traditional funders who see the potential in your product and will have a share in what they put into it funding-wise.
This type of funding is where you can use an online platform to raise funds for your project or product. Through crowdfunding sites you are able to target contacts in your community and online who will back your product. Crowdfunding allows a wide audience to gain knowledge about your product and become invested in it. A few benefits of creating a crowdfunding campaign are: you can hedge risk, use your campaign as a marketing tool, provide access to capital, provide an avenue for pre-sales, and introduce potential customers to your products.
Government backed SBA loans
Government backed SBA loans typically have lower interest rates than private sector loans. According to the Small Business Association, “Government loans are typically offered through banks and credit unions that partner with the Small Business Administration (SBA). The SBA is a U.S. government body, with the motive of providing support for small businesses and entrepreneurs.” There are various kinds of loans one can use, whether you just need a loan for short term purposes, long-term purposes, disaster relief purposes or to help your business get started, you can find the right loan for you and your business. To learn more you can click here.
These organizations will allot you small amounts of money if you are not able to obtain a loan from a mainstream bank. These loans typically start at having a low interest rate and are given to new startup companies or self-employed individuals. The Business dictionary describes Micro lenders as those who “provide small amounts of capital that would not be considered cost-effective for a traditional lender, enabling disadvantaged individuals to have access to small amounts of credit.” Innovaum will help find the right micro lender for you and your business, if this is the funding route you choose.