Without money, you can never take your business off the ground and make your dreams come true. First of all, you should find the necessary business capital to fund your startup so to be able to focus on product development and marketing.
If you’re interested in how you could get business financing for your startup, consider one of the options mentioned below.
Before you’ll go through all these options, consider turning to a reputable business loan provider like firstamericanmerchant.com. First American Merchant (FAM) offers the best business funding opportunities in the field. As a reliable payment processor, FAM specializes in the high risk industry.
- Angel and Seed Investors
Angel and seed investors are interested in funding smart ideas. They can be found in your personal network or you can find them on the Internet. Be prepared to show them a solid business plan.
“Bootstrapping” is used for businesses that are starting with lack of investment. If you’ve decided to choose this method, you should be creative enough so to get things done. Bootstrapping is also beneficial from the point of view of responsibilities. If you’re going to self-fund your startup, you don’t have to pay someone back or report your performance. Interestingly, 80% of startups use self-funding as a method to finance their business.
- Credit Cards
This is a short-term option if you need money right now. Your credit card balance can help you, but you should be careful when using credit cards as taking up too much of your balance may end up with a poor credit score.
Crowdfunding has become quite popular in recent years. It has helped many businesses to start and succeed. Choose a popular crowdfunding site like Indiegogo, GoFundMe, and Kickstarter. Crowdfunding not only helps you with business funding, but also provides you with community that will be interested in your products and services.
- Family and Friends
Like acquiring your first customers through your existing network, you can turn to your family and friends to fund your business. Raising money from family and friends is one of the most common was of startup funding. Traditional banks and independent investors may find it risky to finance your startup, but people who are close to you believe in you and would like to help you.
- Private Lenders
Take your time to research and decide on the right private lender for your situation as there exist so many private lenders nowadays. Compare the terms offered and see whether they boast good online reputation.
No matter which way you’ve chosen to fund your startup, the most important thing is to test your product first. Make sure you’re not raising money for something that’s not going to succeed. Create a small prototype and start some basic marketing testing before applying for investment.