So many dreamers are held back from achieving their goal of starting a business because they lack the necessary funds. Starting a business and then keeping the lights on once it’s up and running can cost a pretty penny, and the financial risk associated with pursuing this path can be enough to shy anyone away from actually accomplishing their hopes and dreams.
Maybe you have already explored some of the more traditional options when it comes to business funding. Or maybe you are just saving your dollars in a mason jar and hoping that one day you’ll have enough to launch.
But there are plenty of other ways hopeful entrepreneurs can fund their business. Diversifying your business funding is beneficial, and it will hopefully lead you to open your business doors sooner than expected. Picking a couple of the business funding ideas below will hopefully help you find success.
Business Funding Ideas
Startup Funding: There are plenty of organizations out there eager to help a startup business receive funding. Funded, an online accredited investor network, can assist you in connecting to potentially interested investors or venture capitalists. Angel investors are also always searching for innovative business ideas and entrepreneurs to invest in.
Small Business Startup Loans: There are several different options when it comes to small business startup loans. Some of these include a business credit card, Home Equity Line of Credit (HELOC), peer-to-peer lending, equipment financing, microloans from a nonprofit lender, or Small Business Administration loans. They all work differently, so figuring out the specifics of what works best for your business and the timeframe in which you can pay back the loan can help you to determine the right route.
New & Small Business Grants — The U.S. Small Business Administration has grant programs for small businesses that meet their requirements. Find out if your business would be eligible for a grant, and consider applying if so. Grants.gov is also a way for new or small businesses to find funding. This is a database of federally sponsored grants that you can peruse based on certain eligibility requirements.
Other Ways to Raise and Make Money
If the options above don’t sound attractive, there are even more creative methods you can try:
- Asking your friends, family, and/or networking connections for money
- Starting a GoFundMe or Kickstarter campaign
- Downsize your personal assets (e.g., sell your phone, old clothes, jewelry, furniture, etc.)
- Make investments in the stock market
- Get a side hustle and put all your income toward your business
- Find a business partner who is willing to put up some money
- Product presales: Allow your consumers to purchase items before your product is made and launched in order to fund the merchandising
- Enter contests that provide money for businesses