6 Ways To Fund Your Business Startup In 2017

Need more money to fund your startup business this year?

While it’s entirely possible to get started in investing and launching a lean startup by bootstrapping and using guerilla marketing tactics, money can make things feel easier and go bigger, faster. Here are six ways to fund your venture and get to the next level in 2017…

  1. Small Business Loans

Traditional small business loans from banks have been notoriously difficult to get for years. That may not have changed much, but there are a variety of new sources and options which can be much easier to gain capital from. Those who are financing real estate as a part of their business may have even more options with a good line up of crowdfunding portals, new specialists offering small business lines of credit, and merchant advances from companies like PayPal and Shopify. Peer-to-peer lending sites like Lending Club are now heavily marketing business loans which they then piece together with funding from the crowd, while some banks have partnered with new channels to offer loans and lines of credit under third party brand names.

  1. VC Money

Venture Capital funds are still active and are constantly looking for potential entrepreneurs and startups to fund. Note that these capital sources are most likely to fund existing businesses which already have a god track record of success, and may have already secured seed funding and ‘friends and family’ rounds of financing before.

  1. Friends & Family

If you’ve got a great business idea, investment model, or profitable startup, you are going to want those you care about most to benefit from that. Help them, while gaining financial backing for your venture from people you like and trust. This can be in the form loans or taking equity positions. Just make sure you preserve your relationships.

  1. Personal Savings

No one has gotten rich on savings accounts. Yet, tech startups and real estate have made many millionaires. Sooner or later that ‘scared money’ in the bank will get eaten up by minor emergencies, inflation, or shopping splurges. It can be smart to have some cash reserves, but once you have 3-6 months’ expenses as a cash cushion, then use your cash to invest and multiply it.

  1. Partners

Equity partners are a great way to gain more capital without having to take on the burden of debt. Smart partner choices can add a lot more value too. Look for people who will energize you and hold you accountable to keep pushing you toward your goals. Look for those with the connections and experience you don’t have, and combine your strengths. Good partner choices, backed up with good paperwork that will protect you, can absolutely help in gaining traction and reaching higher levels of success.

  1. Private Lenders

Angel investors and private lenders are another great source of capital. They may come in as equity partners, with loans, or a combination of both. This is typically a necessary step between friends and family rounds and obtaining VC funding. For some it is all they need. The rates and process can be a lot more attractive than borrowing from banks or conventional lenders. Some find these funding sources elusive, but more and more affluent individuals are looking for opportunities like this. Look for lists, databases, and software which can help you pinpoint and reach out at scale, while working local contacts and networking opportunities.

Summary

For those that want to raise funding for a business or investment venture this year will find many options. It’s all about having a plan, a good pitch, and a strategy, as well as the tools for making the right connections. There is plenty of money out there, if you know where to look and how to present.

About the Author

Kent Clothier is President and CEO of Real Estate Worldwide (REWW), a multi-faceted real estate education company with headquarters in Scottsdale, Arizona, San Diego, California, and Boca Raton, Florida.

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Mr. Clothier is an expert in real estate investing. As such his experiences are not necessarily typical to the standard real estate investor and whose results may vary. The successes shared on this site are not considered typical. Most individuals who order the educational materials and systems probably do not follow any of the techniques or strategies and consequently make little to no money due to their inaction. The company is in the process of determining the typical success of its clients. Stories shared herein are for example purpose only and should not be construed as "guarantees" of success. Results will vary based on background, education, and experience and actions taken.