3. Launch a product pre-sale to raise startup money without a loan
The best financing you can obtain for your company comes from your customers. Sure, sometimes external financing helps you grow faster, but at what cost? Building revenue through your customers and reinvesting in your business will see your tech startup grow organically, without worrying about excessive interest rates or losing your equity to an external investor.
An increasingly popular option to raise startup money without a bank loan is to launch a product pre-sale. Companies from tech startups to tech giants have used this fantastic method to generate revenue. When Apple and Samsung announce a pre-order list and charge you, they’re bringing in revenue before their product is launched, for instance.
As a bonus, it creates interest in your product and helps your company to prepare production levels.
Can you launch a product pre-sale to raise funds for your tech startup? Use of social media, networking, leveraging associations like TechHub, and pursuing other forms of online and offline marketing can help you generate interest in your product pre-sale. You can even hold a pre-launch party and promote your product.
This is a very powerful option, but like anything in business that is worth doing, it takes commitment and planning to make it a success.
4. Offer a discount for early payment
Another increasingly popular method to improve business cash flow. This is particularly relevant for business-to-business (B2B) startups. Instead of receiving payment after a month or two, offer your client a small discount if they pay immediately or sooner. As a bonus, you improve client relations too!
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