It’s time to build your business, but you need the proper funding to make everything a reality. There are several ways for you to obtain the money required to not only pay your rent, employees, and yourself, but to keep money flowing , so that you’re not just relying on sales to keep your business afloat.
1. Family and Friends
Need money in a pinch? There’s no better direction than pitching your business idea to friends and family and seeing if they are willing to either loan you the money for a payback with interest or for a stake in your company. This is a great way to avoid getting involved with banks or outsiders.
Have a big idea (especially a product) that you think the public would love? Starting a campaign on websites like Kickstarter.com, RocketHub.com, or GoFundme.com could not only help you receive funding for your company, but help you build buzz, before your service or product even becomes a reality. It’s also a great way to test interest in your company, as donators who give higher amounts are often guaranteed the product. The more people want it, the more they’re willing to donate.
3. Angel Investors
There are many wealthy patrons out there who predominantly invest in startups. Yahoo and Google were both helped by angel investors in their early stages. There are tons of websites out there that help you connect to potential angel investors, including gust.com, angel.co, and Newyorkangels.com.
4. Credit Cards
Once you register your company name or create a site, chances are you’ll start receiving invitations to apply for business cards with major entities like American Express, Discover, and Bank of America. This is a great and relatively easy way to fund you venture, if you have good credit or existing assets.
Building your business using only the minimal requirements until you begin to turn a profit is considered bootstrapping it. This is great if you have a little cash in your pocket to spend and don’t want to buy out investors down the road. There is also less of a risk down the line if the business doesn’t go as planned because you won’t have to pay off loans.
Doing extensive research into the best fit for your money needs will help you tremendously in your pursuit of success. Seek out financial consulting to help you decide what funding plan is right for your company. Also, look into your state’s Small Business Administration; they may have ideas on how to get cash with fewer strict requirements. Be sure to plan wisely, so you can start your startup strong.
References & Further Research:
Newlands, Murray. “How to Get Funding for Your Startup.” Forbes.com. https://www.forbes.com/sites/mnewlands/2017/03/02/how-to-get-funding-for-your-startup/#41ac738f1ccb (accessed July 28, 2017).
Pimentel, Benjamin. "Where to Find Startup Business Loans 2017." nerdwallet.com. https://www.nerdwallet.com/blog/small-business/start-up-business-loans-for-bad-credit/ (accessed July 28, 2017).