Check out these funding options to finance your business venture…
If you feel stuck on the path to bringing your business idea to life, or scaling your venture to the next level, these seven funding options could be just what you need.
- Make it
If you are adamant about making it on your own, then making the money to fund your venture could be an option. Saving from your regular paycheck may be too slow. You could get a side gig. That could be a part-time job, turning another hobby into extra cash, or taking on a side project at work that will give you commissions and bonuses you can dedicated to your own business. One of the best ways to generate fast lump sums of cash that can be used to start or shore up other ventures is real estate wholesaling. It can be done in a few hours a week, and can quickly lead to a six-figure side income.
Partnerships can be a great way to put together expert help and the cash you need to launch a new business. It can be finding one other co-founder, or two. Or you can find a small circle of individuals or even businesses who share the same goals and values. You choose how you split up control, roles, and decision making. Remember, this is about more than just bringing in a new cash injection. Good partners can offer a lot more in terms of value, experience, and new connections.
Crowdfunding has become a popular way to try and fundraise for venture capital over the last few years. There are now over 100 crowdfunding portals and websites to help entrepreneurs raise the funding they need. This ranges from donation based crowdfunding sites like Kickstarter to equity and debt crowdfunding portals. This can be a great way to get the money, and raise your visibility and create some buzz, and prove your product or service at the same time. Just be sure you understand the legal costs, marketing expenses, and how much work is really involved in these campaigns, as it can be quite extensive.
- Private Lenders
The private lending space has exploded since 2008. People don’t trust the banks like they used to, and they don’t want to give up all the returns and fees banks and traditional financial advisors mean. Private lenders can be a great source of capital for new businesses. Startups can provide these investors with high growth and exciting opportunities. This can also give entrepreneurs and existing businesses access to capital on flexible terms, with less hassle, and often at better net borrow rates.
- Friends & Family
Friends and family can be one of the easiest sources to raise funding from. It can be faster, cheaper, and provides more flexibility when things don’t go as planned. They can provide loans, or partner up and share in the equity. Many other venture capitalists and angel investors will look at these and see who else has invested in you. It’s a good sign if you can raise money from friends and family. Just make sure you don’t deplete your equity and cash flow too much, and limit future fundraising options.
- Business Loans & Lines of Credit
While traditional banks still may not be easy to get business loans from, there are many new options in the marketplace. There are lenders specializing in mortgage credit, unsecured business lines of credit, merchant cash advances, and more. Some will fund startups, others require a couple of years in business or a proven track record. Some require personal guarantees, others don’t.
Another option is to self-fund by selling. Can you create a basic starter version of your product or service, to begin bringing in some cash before expanding your product line? Perhaps you can even pre-sell and take early orders for product, and have customers fund it, as home builders and developers do.
There is plenty of money out there, it is just about knowing the best ways to bring it together to fund your business. Explore these seven options to find the most viable choice for your venture, and which suits your plan best.