What Are the Best Sources of Business Funding?

June 21, 2022

 

The economy is bouncing back from the economic crisis and digital tools are providing an unprecedented wealth of resources to entrepreneurs: the stars seem to have aligned to offer the best conditions to start a business!

And yet, less than half of new firms make it to their five-year anniversary. And, it might all depend on your ability to secure the funds you need to get started. Wondering where to start?

Here are 7 pathways to secure the funds you need to grow your business.

 

Start With Your Own Savings — But Only If You Can Afford It

There is no doubt that you should be your business’s first investor. After all, if you believe in your idea’s potential enough to incorporate a business, you wouldn’t think twice about investing some of your savings in turning it into reality.

However, no matter the state of your finances, it is not recommendable to put all of your eggs in one basket and invest all of your assets in a single project. Instead, use tools like credit tracking and monitoring to gain insights into your finances and understand what you are comfortable losing without running into overwhelming debt.

 

Learn About Government Grants

If you are trying to get your young business off the ground without throwing your finances off balance, you should look for funds you are not required to pay back.

Depending on the industry you operate in, the US government makes nearly 60 grants and programs available to entrepreneurs in the process of starting a business.

 

Apply For a Business Loan

If your business isn’t eligible for any government grant, you might consider applying for a small business bank loan. These are regulated by the Small Business Administrations and are crafted with the needs and goals of entrepreneurs in mind, which means that you might be able to enjoy grace periods and reduced interest rates.

At the same time, banks understand the risk involved, and your lender will require you to produce a business plan as well as a financial forecast and your own credit history. Depending on the type of loan you are taking out, the lending institution might also need to secure the borrowed money with collateral.

 

Seek The Help of Angel Investors and Venture Capitalists

 

If you have launched a revolutionary startup with high-growth potential, you might find the funds you need by knocking on the door of angel investors and venture capitalists. The former are usually wealthy retired executives who invest money, expertise, and network in a worthy business in their field. Today, there are over 300,000 angels in the US.

The latter are investors looking to buy some equity out of a young business in the hope of perceiving high returns from it. While angel investors tend to finance businesses at their early stages, venture capitalists prefer to intervene later on, when large amounts of capital are needed.

 

Take Part In a Business Accelerator Program

Business incubators and accelerators are companies that focus on helping small businesses and startups develop. These organizations leverage the expertise of industry experts, tap into a large network of contacts and provide premium mentoring services to entrepreneurs.

If your business is set to become a disruptive or innovative force in a certain industry, these programs might be the best option to lay the foundations of a successful company.

 

Try Your Luck With a Crowdfunding Campaign

Crowdfunding campaigns are becoming increasingly popular and efficient. And, they certainly represent a viable option for entrepreneurs looking to collect funds and market their business at the same time.

However, before diving head-first into your crowdfunding campaign, make sure to understand the rules of each platform to avoid penalties, and create a campaign that truly stands out – the competition has never been fiercer!

 

Invest Borrowed Money From Friends and Family

If your family and friends believe in your business as much as you do, they will be happy to offer monetary help. When opting for this route, keep in mind that your loved ones will rarely have large chunks of money available, so you might only be able to use their loans to bulk out your own savings.

However, if you just need to keep your cash flow healthy before new customers start pouring in, this might just be a quick and easy solution to pump resources into your start-up!

0 Comments

Submit a Comment

Your email address will not be published.

Is Your Business Being Found Online?

Laptop Metrics Colorado

Free Digital Marketing Report ($150 Value)

marketing module lineWant to know how your business stacks up against the competition?

Read more articles about Business.

Top Email Marketing Tips and Practice

  Email marketing is one of the most influential and powerful tools in a digital marketer’s arsenal. With the correct strategy, you can rake in lucrative business from your contact list. In this article, we talk about the top email marketing tips and practices...

6 Resources You Need To Run A Blog More Successfully

  If you're serious about running a successful blog, there are some key resources you need in order to make it happen. From tools to help with content creation and promotion, to services that will keep your site running smoothly, having the right resources in...

Top 12 URL Shorteners to Use in 2022

  What are URL Shorteners? A URL shortener is a tool or service that lets you create unique, short URLs for redirection to a particular website or webpage. You can identify a shortener link as it mentions the tool's name along with a combination of random...

How To Build A Marketing Technology Stack

Businesses leverage numerous sophisticated digital channels—from social media to email marketing—to reach and engage their target audience. With the right tools, your marketing team can fully utilize these digital channels and bring better results.  Thus, building an...

5 Reasons Why Small Businesses Need Payment Processing

As a small local business, it’s possible that you never felt the need to invest in payment processing. After all, you’ve been successfully using the cash-only approach for years, so why change it now? To help you see the advantages of such a switch, here are some of...

How White Label Solutions Can Boost Your Brand Image

  Starting a business is one thing, but developing it into an established company is another question. Growing your startup to a reputable setup takes time and effort. As your business expands, it always results in unpredictable overheads as you try to meet the...

5 Ways To Level Up Your Martech Stack

A marketing technology (Martech) stack is a combination of tools marketing experts use to develop, manage, execute, and track promotional initiatives. With this technological innovation, companies benefit from making challenging processes easier and measuring the...

How To Create A Marketing Continuity Plan

  Fortunately, more modern businesses are putting their business continuity plan in place to protect their operations from losses. Still, some companies fail to realize its significance and often experience disasters that severely hinder their growth. If you're...

Read more articles about business.

5 Reasons Why Small Businesses Need Payment Processing

5 Reasons Why Small Businesses Need Payment Processing

As a small local business, it’s possible that you never felt the need to invest in payment processing. After all, you’ve been successfully using the cash-only approach for years, so why change it now? To help you see the advantages of such a switch, here are some of...

7 Important Elements of Successful Business Partnerships

7 Important Elements of Successful Business Partnerships

  Did you know that around 80% of all business partnerships fail? If you’ve ever been in a business partner relationship (or any relationship for that matter), you understand the struggles that go into it. No matter how well you work together, there will always...

6 Tips On How To Find The Right Web Hosting Plan

6 Tips On How To Find The Right Web Hosting Plan

Are you in the market for a new web hosting plan? If so, you may be feeling overwhelmed by all of the options available. How do you know which plan is right for you? And more importantly, how do you avoid getting scammed by a shady web host? This blog post will give...

4 Ways To Overcome Business Blind Spots

4 Ways To Overcome Business Blind Spots

  When it comes to business, the most challenging problems to address are those that you can’t see. These are called business blind spots—now you know why you can’t see them. Every business has blind spots. Even the world’s most successful companies experience...

Own A Shop? Try These Innovations To Grow Your Business

Own A Shop? Try These Innovations To Grow Your Business

If you're looking for ways to grow your business, you're in luck. There are many business innovations out there that can help you achieve your goals. In this article, you will read about some business innovations that can help you take your business to the next level....

5 Ways to Improve Your Company

5 Ways to Improve Your Company

  If you’re growing your business and hoping to achieve the kind of success that you set out to accomplish, you may be looking at the way that things are done right now. Is there any room for improvement? There could be. Here are a few ideas to consider if you...

Share This