How do you get funding for your new business?

Securing the right funding is one of the most important challenges facing entrepreneurs, as it represents the foundation from which the project is launched towards implementation and growth. Funding methods vary depending on the nature of the project, its size, and its viability. The following are some of the available ways to obtain funding, while explaining the role of feasibility studies in enhancing the chances of obtaining it.

1. Self-financing
Self-financing is the first option that many entrepreneurs resort to, where the entrepreneur uses his personal savings to finance the idea or cover part of the initial costs. One of the advantages of this method is that it gives you full control over the project without the need to involve external parties. It also allows you to test your idea on a small scale before looking for additional funding sources.
However, the disadvantage of self-funding is that it may limit the speed of growth, especially if the idea requires large investments. Therefore, self-funding is best used for small projects or to cover initial costs before resorting to other options.

2. Bank loans and Islamic finance
Banks are among the most prominent providers of funding for new ventures, offering several programs designed to support entrepreneurs. Loans can be obtained by submitting a strong feasibility study and a clear business plan that demonstrates the feasibility of the project and its ability to generate profits.
There are two main types of loans:
Conventional loans: They are offered at fixed interest rates and repayable over a period of time agreed upon with the bank.
Islamic financing: Based on Sharia-compliant formulas, such as Murabaha, Musharaka, and Ijara, where the bank shares the risk with the entrepreneur instead of charging fixed interest.
Obtaining a loan requires proving the feasibility of the project and its ability to generate profits, so it is necessary to prepare an accurate feasibility study before applying to the bank.

3. Find individual investors
There are many individual investors who are looking for opportunities to support new projects in exchange for a stake in the project. This option is characterized by not having to repay the investor directly as is the case with bank loans, but in return, the investor is a partner in profits and decision-making.
It is important to choose the right investor who believes in your business idea and can provide additional support, either through their experience or their extensive network of contacts.

4. Venture capital
This type of funding is suitable for fast-growing ventures, where investment firms offer large sums of money to support startups in exchange for a share of ownership. These firms are usually interested in ventures that have great potential to expand both locally and internationally.
Venture capital is provided in several stages, starting with initial funding for idea development and subsequent funding for expansion and growth. In order to attract investors, a project needs a strong business plan, a professional team, and a thorough feasibility study that demonstrates its future potential.

5. Crowdfunding
Crowdfunding platforms are a modern option that allows the entrepreneur to raise funds from a large number of people online, where individuals contribute small amounts to fund the project in exchange for rewards or investment shares.
One of the advantages of this method is that it allows the entrepreneur to test their idea in the market before officially launching it, and it helps build a potential customer base from the start. However, the success of crowdfunding depends on the attractiveness of the project and its ability to convince the public of its importance.

6. Government support programs
The Saudi government provides several programs to support startups, with the aim of encouraging innovation and entrepreneurship and promoting economic development. Some of the most prominent of these programs are:
Saudi Industrial Development Fund (SIDF): Provides dedicated funding for industrial projects.
Social Development Bank: Supports small businesses through grants and soft loans.
Kafala program: Guarantees SMEs’ loans with banks to facilitate their access to financing.
These programs help reduce the financial burdens on entrepreneurs, especially in the early stages of the project.

7. Strategic partnerships
You can look for a business partner who has capital or resources that can contribute to the success of the project, where both parties share costs and profits. This method reduces the financial burden on the entrepreneur and allows him to benefit from the partner’s expertise and contacts in the market.
Partnerships are especially useful in projects that require logistical support or operational expertise, such as industrial or technical projects.

Valeo’s role in securing funding
The feasibility study plays a pivotal role in the success of any startup, as it is the primary document that investors, banks, and support funds rely on when making funding decisions. Without an accurate feasibility study, it is difficult for a business owner to prove its economic viability and ability to generate profits, which reduces the chances of obtaining the necessary funding. This is where Valeo Feasibility Studies and Business Solutionscomes in, offering integrated solutions to help entrepreneurs secure the right funding for their projects and achieve their investment goals.
How does Valeo help you secure funding?
Valeo provides a range of specialized services that directly contribute to increasing the chances of the project being accepted by investors and financiers, including:
1. Preparing detailed feasibility studies
Financiers, whether banks, individual investors, or government support funds, require a comprehensive feasibility study that outlines all the financial and operational details of the project. Valeo prepares detailed studies that include:
Estimating the initial and projected costs of the project.
Identify key revenue streams and potential financial returns.
Analyzing the break-even point to know when the project will start making profits.
Studying potential risks and developing plans to avoid them or minimize their impact.
2. Analyze the market and determine demand and competition
Understanding the market and competitors is an essential element of any successful financing plan, as investors want to make sure that the project has a real chance of growth and success. Valeo conducts rigorous research on:
Target market size and current and future demand trends.
Analyzing the competition and identifying market strengths and weaknesses.
Market entry strategies to ensure strong sales from the start.
Precisely defining target groups to ensure efficient marketing and sales.
3. Provide operational and marketing plans to attract investors and financiers
It’s not enough for financiers to know the costs and returns, they also need a clear vision of how to operate the project and achieve success on the ground. Therefore, Valeo provides detailed operational plans that include:
Production, supply and distribution mechanisms.
Human resource and operations management plans.
Marketing and merchandising strategies to ensure rapid penetration.
Revenue models and how to achieve financial sustainability.
4. Providing innovative financing solutions based on the nature of the project and its needs
Due to the different nature of projects and financing needs, Valeo offers customized financing solutions that suit each project individually, such as
Advising on the best types of financing available, be it bank loans, venture capital investments, or government support.
Preparing professional business plans and presentations to attract investors and convince them of the feasibility of the project.
Negotiate with funders to facilitate access to funding on favorable terms.
Provide cash flow management strategies to ensure the financial sustainability of the project.
Why is Valeo’s feasibility study an essential tool for the success of your project?
A feasibility study is not just a technical document, it is the most important tool that determines the success or failure of a project when seeking funding. Investors and financiers don’t just rely on the idea of the project, they want digital evidence and hard facts that prove its viability. Therefore, relying on a professional feasibility study from Valeo can make all the difference in getting funding quickly and easily.

Financing your new venture is no longer a challenge with Value Feasibility Studies and Business Solutions, where we provide comprehensive support from concept to implementation. With our deep expertise in feasibility studies and financing solutions, we help you attract investors and achieve the success you desire. Don’t miss the opportunity, every successful project starts with the right step!
Don’t hesitate to contact us via WhatsApp or call us directly to get specialized advice and get your project off the ground.