Unfortunately, when you decide to start your business, there won’t be people waiting in the wings to throw money your way. There is no magic involved. You will have to work just as hard in securing funding as you do in the actual operation of your business.
However, there are additional, creative options that you can explore that will greatly help in the financial process of starting a business. If one of these options does not work for you, don’t get discouraged. Regardless of your situation, there is a solution that will fit your needs.
- Choose to fund your startup yourself. While this option might take longer than others since you will have to spend more time saving, it does mean that you won’t have to give up any equity or control. In addition, the costs of starting a business are at an all-time low. At the moment, ninety percent of startups are self-funded.
- Seek support from friends and family. This is the primary source of non-personal funds for startups in the early-stages. Professional investors will actually expect that you have already gained the support and commitment from your friends and family. This demonstrates to them your credibility. It is hard to expect investors to line up if you are unable to show that the people closest to you believe in you.
- Secure a startup business cash advance. This has become one of the most popular forms of financing for small business owners and startups. Contrary to popular belief, this form of financing is not a loan; it is a purchase of your future sales at a discount. It also provides flexibility in that the collections are revenue based. If you experience a slow month, the pay back will be lower. If you have a busy month, the pay back will be higher.
- Credit scores below 500 are approved, and you receive your funds within 72 hours from application. In addition, no tax returns or financials are required. This is very different from a small business loan which has strict credit requirements, long wait times and complicated contracts. A startup business cash advance offers you a simple, flexible option of getting your business started.
- Make a request for a small-business grant. The first place to look for a grant is Grants.gov. Grants are government funds that have been allocated to support new technologies and important causes; such as, social needs, medicine and education. Although grants involve a long process, it won’t cost you any equity and there are thousands of federal grant programs available.
- Begin an online crowdfunding campaign. This is the newest source of funding for startups. It involves people making pledges to your startup while you are in the campaign point of the process. These pledges might involve pre-buying your product for a later delivery, a donation or securing a reward (like a free T-shirt).
Whatever method(s) you choose to get your startup on its feet, it is going to require work and commitment. It is important to take the time to really examine all of your options. Every funding decision will involve either near-term or long-term costs and paybacks. It will be up to you to decide which option will be best for both the present and the future of your business.Get Started Now