Financing Businesses in Different Industries
There are many ways to finance a brand new business and the most appropriate methods to do this can change from industry to industry. Each sector has its own particular demands which require financial focus on certain areas more than others.
From specialised loans to software for managing invoices, payments and other essential parts of the company, it’s important your business follows the relevant financial processes. Industry guides from Touch Financial lay out how different approaches benefit each sector and for starting out some initial funding initiatives are better than others.
Creative Sector
Setting up a creative company is far more likely to pique the interest of the general public than forming a new accounting firm. Therefore using a crowdfunding platform to raise funds to start businesses in the creative sector is an interesting and proven to be successful method. This essentially uses people with an interest in the service or product as investors.
Everything from film sequels and new albums from bands, to all sorts of innovative ideas have been brought to life through Kickstarter and other sites. It’s not just one-off products and services though, small film companies and record labels have all received enough funds to get going or continue through generous donations from all sorts of people.
Technology Industry
Crowdfunding has been used to get interesting items of technology funded and produced, but to form a sustainable company it’s not always the best method. Running even a small business requires a constant cash-flow and most crowdfunding campaigns only cover material and labour costs for one product.
Attracting the attention of an investor or group of investors may be more appropriate for businesses in the technology sector. This allows more money to be pumped into the business which should lead to greater products and services. There’s also less of a timescale, which is useful for highly innovative companies as it presents more flexibility in the funding made available.
Distribution Services
Starting a distribution service or self-employed solo venture such as making and selling clothes online isn’t new. That doesn’t mean you shouldn’t have a go though, if you’re good at what you do and have a strong business plan it’s possible to become a success.
However, it may not entice investors if there’s already a lot of competition about. Instead taking out a small business loan should provide enough to get you started and help form your first targets by earning enough to meet the repayments. Whichever sector your business is in there’s a relevant financing option out there.
Category: Business
