Among the multiple financial challenges that an entrepreneur faces, there are two that stand out for their importance and the challenge they represent: how to get started and how to keep growing once launched. Today we will talk about the first one.
When launching a new project, even for experienced entrepreneurs, the biggest obstacle can be financing. And in many cases, the funds needed to start it can only come from personal savings, the result of years of effort and sacrifice. However, business opportunities don’t always come at the ideal moment, when funds are already available, and a great idea can be lost if external financing cannot be secured in time.
Getting traditional financing is not easy at all. And although public programs and grants exist, these are full of requirements, long deadlines, and very specific criteria. And, on the other hand, banks demand collateral, guarantees, a long list of documents and, even after weeks of waiting, they don’t always give a favorable response. It’s true that having the support of a consultancy or a specialized manager allows navigating these processes with greater success, but even so, many entrepreneurs end up discouraged seeing how a good idea gets stopped by factors that have little to do with the real potential of the project.
It’s at this point where knowing and exploring alternative financing sources can make the difference between taking advantage of an opportunity or seeing how another person launches that same idea. And in the world of SMEs, tools have already emerged that previously seemed exclusive to technological start-ups from Silicon Valley, Beijing, or Cambridge, but which today are within reach of any entrepreneur, even from their mobile phone.
For new projects, crowdfunding platforms appear as a great opportunity. These have proven to be especially effective for innovative ideas, social projects, or creative products, where collective enthusiasm plays a fundamental role.
Crowdfunding is a private fund-raising mechanism that takes advantage of the visibility of the digital environment. Platforms like GoFundMe, Kickstarter, or Crowdcube act as a bridge between those who need capital and those who are willing to support projects they believe in. In exchange for a commission for the service, if fundraising objectives are met, the funds become available in their entirety for the use of the announced purpose.
If your project generates enthusiasm, has a technological component, or you believe it could attract many people if they had the opportunity to know about it, this modality is perfect for you.
Now then, what if your business is already up and running and what you need is another type of financial products, even if that implies assuming a cost for the funds received? For these cases, fintech companies represent an excellent option.
Starting a business without the support of traditional banking is possible, but it requires knowing well the available alternatives and acting with determination. Initiatives like crowdfunding allow taking the first steps when access to credit seems blocked, offering a direct, flexible, and digital way to validate an idea and obtain the necessary resources. Taking advantage of these tools not only represents a financial solution, but also an opportunity to connect with the public, validate market interest, and create community around a project.
If you need help in this area, you can request the free advice that we offer from the Economic Office of Galicia. All you have to do is fill out an online form and an expert person will contact you.
