I recently started a small media company with the focus of selling adds space on my online channel. I have already spent my initial start up from my family members. How do I go about securing the rest of the capital for more equipment I require?
Taking on additional debt can be risky but if you have to in order to keep the business afloat then you have to. You could borrow off of credit cards or take a small business loan (really high interest rates!). Another option is to offer equity to family and friends for more cash. You can also offer family and friends a higher interest rate if they lend you more. For instance you could tell them if you give me $1,000 today I will give you $1,200 in a year which is a 20% return (or 2 years or x years). If you put together a business plan it may be easier to get funding. Also, networking by going to different groups like BNI, rotary, chamber of commerce, score, meetup.com, toastmasters, etc. Maybe you can meet someone looking to invest.
Best of luck! It sounds like a very interesting business!
I have owned and operated (for 6.5 years) a successful math tutoring franchise called Mathnasium. My center has ranked in the top 10 (in terms of revenue) for each of the past four years (out of 900 centers). I have has consulted dozens of franchises and small businesses since 2013. Prior to this I worked on wall street for 13 years as a bond trader.
Sounds like you have some pieces in place, which is good. To get the rest secured, consider the following:
* Develop a financing plan that encompasses how the money you raise will drive your business' growth as well as how much you need - it sounds like your initial approach fell a bit short.
* Explore borrowing options through community banks, credit unions, microlenders or other places that help earlier stage businesses and usually offer lower interest rates than credit cards.
* On the investment side, really think through your needs - weigh buying vs. leasing and new vs. used, in addition to prioritizing your equipment from must-have to nice-to-have.
If you wish to discuss, send me a PM through Clarity for 15 free minutes.
In my current role I provide services to raise financing for businesses from a panel of providers. We assess risk, to provide the right product for your business. Hence securing additional funding can be done if you can show consistent revenue for your business over a 2-3 year period. Will the additional funding open up other sources of revenue for growth? As equipment or machinery may add more sunk costs to your business that may hurt your balance sheet. Ill be happy to discuss the needs of your business further.