The challenge of running a business only starts with getting a solid idea. To put that idea into practice, you need to get the starting capital. Scouring for investors is one of the most challenging tasks that initially every new business has to face, and with a plethora of new set ups competing with one another for funding, this challenge is not getting any easier any time soon.
Having said that, if you are looking for ways to fund your business, there is no reason why you can’t find one if you’re determined enough. To lend you a helping hand, we help you figure out sources of finance you can tap to get that much-needed capital.
Business Incubators: Business Incubators are increasingly making their presence felt, helping your business in various different ways. From helping you provide starting capital, to giving you much needed advice, support, and crucial business basics. Their services range from legal and tax counselling to providing networking opportunities every new business dearly craves.
Grants and Competitions: Yes, applying to grants and competitions for funding is not a sure way of finding capital for your business. Apart from the effort, the uncertainty that surrounds your chances of actually winning the grant or a competition may put off many businesses. Yet, it doesn’t hurt to give it a try. If this is not convincing enough for you, what you need to know is that governments increasingly giving new business ways of applying to grants and competitions, especially if they pioneer in technology or eco-friendly operations.
Crowdfunding: Crowdfunding refers to using the internet to find a bunch of different investors with typically small investments making one significant sum. With new platforms like IndieGoGo and Fundable now available, why not giving it a try?
Business Loans and Credit Lines: Business loans and credit lines are two ways that don’t rank too high on to-do list of new entrepreneurs as they need to be paid back in a timely manner, something that new businesses really can’t be sure of. Yet, about 65% of new businesses rely on credit cards to fund their operations. If this isn’t your cup of tea, how about you consider the Small Business Administration loan offered by the U.S. government?
Angels and Venture Capitalists: Angels and venture capitalists scour the market for ideas that are worth their bucks and when they do find one, they provide the start-up capital for that business in exchange for a stake in the equity. A perfect way to get your business up and running. However, the competition is likely to be very tough and you would need to convince the angels or venture capitalists that your business setup is superior to that of the competition.
At the end of the day, all of these five methods are viable options with certain upsides and downsides. Some are way too competitive, while others offer little certainty. At times, you might even have to relinquish some control of your business. If all of this doesn’t appeal to you as much, an alternative way of getting some short-term cash is considering a merchant cash advance.
Merchant, such as the First American Merchant, are increasingly offering merchant cash advances to new businesses in need of some short-term cash. There is no competition or uncertainty. All you have to do is fill in a simple form and you are good to go. A short and simple way to getting some cash in advance.Get Started Now