When you have a business that offers taxi services and you want your next step to be growth, it's important to have financing. Get quality software, manage good marketing campaigns, increase your number of drivers, take care of their training, and other expenses that may arise. We are aware that growing a business is not always an easy task.
Raising money can take time, however there are several methods you can use to expedite this process. So don't get discouraged if you're still starting out in the business, money is at our fingertips, you just have to go out and find it. Motivated to help our clients, we have compiled some of the most profitable alternatives for raising capital.
The classic way of bank financing
Asking for bank loans to start or make changes in a business is one of the oldest ways. We recommend that the plan that you present to your bank be well thought out. If you have an accountant in the company, his advice is vital. In this way, the process will be much simpler and faster, because it's well known that errors in calculations can make these procedures more cumbersome.
This alternative is better for those who have already established themselves as a company for some time. Loans have certain risks that people who don't have an established base cannot take. You also have to think carefully if you live in a country with poor or unstable banking systems. A loan shouldn't be taken lightly, it's a responsibility that could go wrong if the agreements are not fulfilled.
The investment angels
It will sound like an exaggeration to call them angels, but it's the nickname they have earned within the investment world. These are entrepreneurs who have lucrative businesses and lend a hand for external financing of other companies. It's convenient because they don't just give monetary help, they also provide mentoring to those brands that they found promising.
Unlike bank loans, they can invest being aware of the amount of risk that investment requires. Although, they don't venture to give their money to anyone who comes to ask for it either. They need a great proposal and commitment to know that their money is not in the hands of people who don't know what they are doing.
What is crowdfunding?
Now fundraising is back in trend, or as the new generations call it: crowdfunding. Many platforms have been created where you can present your case and people from all over the world collaborate to achieve what you want. They can be just normal people making a small contribution, or larger investors. By having collective financing, you have liberties that the institutions don't allow.
Sometimes it's crucial to cast your ideas in a positive light, to see how your business can bring improvements to the community around you. For example, in the world of transportation, a company that is more environmentally friendly would be striking. Or, a business that has all the facilities for customers with disabilities. It's a matter of creativity and making your potential investors see that you differ from other brands.
Are hedge funds profitable or dangerous?
It sounds somewhat uncomfortable to hear that it's called a risk fund, but you have nothing to fear. They are called that because it's a system similar to investing angels. In the same way, you have to present your taxi service in an attractive way so that they notice you and provide advice. But, upon recovering their investment and seeing that the objectives were met, they are withdrawn.
Venture investors tend to prefer large or well-established companies. Bearing in mind that they know that stability is what keeps a company going. Many times, these investors can be a bit harsh with the advice they give, their experience precedes them, but not everyone likes that harshness.
Does your business need to go through an incubator or accelerator?
Business incubators are very famous today in the world of economics. They may be made up of high-ranking CEOs or by government entities, depending on the country or area. Accelerators also work on the same basics but have some key differences which we explain below:
● Incubators nurture brands or businesses, that's why they got that name. Funding is provided with guidance, building relationships and even long-term partnerships.
● Accelerators, on the other hand, are the ones that give an extra push to all the work you do. They have specialized in the area of creation and help launch new businesses or brands that look promising.
Both options require a real commitment, because they usually have an estimated time for your plan to work. Normally, it's usually 8 months maximum, where you must comply with agreements, take their strategies, apply them and prove your worth. So if you're not willing to take on that type of plan, it's best to consider one of the above options.
The money to boost your business can be yours now
As you may have noticed, there are a plethora of financing options available for the most novice entrepreneur. The trick is to have well established where you're going as a company, how you project yourself into the future, and present all this with great security. Presentations always have to be dazzling, people are convinced through the eyes too.
We recommend mixing different types of financing, always reading all the points in the agreements to see if it's worth making certain commitments or not. Sometimes it's often more practical to move from one option to another as you grow as a business. Take advantage of these alternatives and manage to climb among the best in the market for taxi services.