Different Ways To Raise Funds...

So finding the funds to put on your first live event or starting your own live events company can be difficult, however this is something that most promoters will have to do in order to get their first event off the ground. Raising money can be done in various different ways but if you feel like you've got a really good event concept and have the business skills to convince others of its worth, then getting funding from elsewhere could take a lot of the financial weight off your shoulders!

In this article I have listed for you 4 ways in which you could raise funds to cover the overheads of your live event or to start off your own events company...

1: Angel Investors

So if you've ever watched the TV shows "Dragons Den" or "Shark Tank" you might already know what an angel investor is. Essentially they are venture capitalists that use their own money to invest in ideas or companies that they feel they can relate to, or they want to be a part of. However, they will only invest in ideas or companies where they see a high potential return on their money (McKaskill, 2019). This means that if you get an investment from them it is likely that you will have to give up equity in your company in return or if its a 1 off event a percentage of the show profits. This may put you off however good angel investors can often bring a lot of expertise to the table which in turn could increase your overall success!

2: Bank Loans

Now hopefully you all know what a bank loan is and form many businesses this is there primary source of funding that they use in order to get themselves off the ground. Business loans are set up to help people take advantage of growth opportunities such as developing new products, entering new markets or purchasing assets. You can choose interest rate to be fixed or variable, depending on your circumstances and your current and future business needs (Financing your business, 2019). Unlike angel investors, the banks wont usually take any equity away from your company however, the interest rate of some business loans can be pretty high so its always worth checking out a few different options before you get caught up in a financial fiasco!

3: Brand Partnerships

For a 1-off live event, brand partnerships can be a great way to raise money or mitigate costs. In this case brand partnerships are when other business partner with events in order to publicise their own brands (such as Carling sponsoring a music festival) and its very common amongst all levels of live music events. Not only can partnering with a brand help finance things like marketing or provide free merchandise/sellable goods, its also a great way to increase awareness amongst your target audience and reach new audcances through the parenting brands contacts and social reach (BRAND PARTNERSHIPS, 2016).

4: Save Up

Now saving up might seem like the most obvious and maybe hardest option, because you have to work in order to achieve it. However saving your own money means that you have the freedom to make your event exactly the way you want it, as no one els is invested in it. It might take a little longer but using your own money is the best way to ensure that you can maintain creative freedom!

References:

BRAND PARTNERSHIPS. (2016). [ebook] ClassPass. Available at: http://afterclass.classpass.com/wp-content/uploads/2016/10/ClassPass-Brand-Partnership-Webinar-10.18.16.compressed.pdf [Accessed 5 Apr. 2019].

Financing your business. (2019). [ebook] TSB, p.8. Available at: http://file:///Users/user/Downloads/TSB12084(M)_Financing+your+business_Web_20190222.pdf [Accessed 5 Apr. 2019].

McKaskill, D. (2019). An Introduction to Angel Investing. [ebook] London. Available at:https://www.angelcapitalassociation.org/data/Documents/Resources/McKaskill-_Intro_to_Angel_Investing.pdf?rev=CF33 [Accessed 5 Apr. 2019].