In the current digital age, businesses are spoilt for choice when it comes to finding ways to upgrade, innovate and streamline their processes. This means investing in new technology which, in the long run, can lead to lower costs, higher margins and new market opportunities. However, as with anything, this technology comes at a price and for many businesses, this price is something they can’t always afford upfront. Instead, it is necessary to use other means to find the funds to invest in new business tech; so here are 4 ways to do exactly that.
Grants are, in many ways, the perfect source of finance as it comes without a need to repay it and it means you don’t need to give up any equity in the process. There are of course limitations, and you will need to work hard to get the money. If you are in a specific sector, such as education, medicine or innovative technologies, then you may find it easier to find grants that apply to your business. To start, you should search your government’s directory for grants that are available; as well as speaking to your local council or any institutions you are a part of, like a university.
2. Speak to friends and family
When it comes to securing funds from friends and family, this is an incredibly personal thing and will depend on everyone’s financial security. It would only be wise to ever take this route if they have the money to spend and are well aware of any risks involved with your business. In the long run, it is not worth taking on any kind of risky investment from friends or families if you feel it will ruin your relationship with them.
3. Find investors
If your business offers exciting potential and the tech you require will see you move one step closer to your eventual goal, then chances are you will be able to find investors willing to get on board. What is great about investors, is that they are always high net worth individuals who aren’t scared about losing small investments if the worst scenario occurs, and they usually have a wealth of knowledge and experience which will also be helpful for your business. Just note that it will require perseverance to find suitable investors, and they will want a percentage of your company.
4. Payday loans
If you require a relatively modest sum of investment and know that the tech purchased will quickly pay dividends to your business, then could be the way to go. You have the option to pay these loans back over a few months and can have the money readily available far faster than other methods of raising funds.
Of course, which ever method you choose will depend entirely on your business’s financial circumstances, and whether or not you are willing to give up equity to secure the finances. Before deciding, think decisively about exactly how much you need and how fast you need the money; as this will likely impact your eventual decision.