Financing is one of the more challenging aspects of starting a business and running it. There are often many obstacles to achieving financing, when raising budgets to start and grow a business.
Lack of money and cash, often leaves startups and small businesses deflated and without momentum. A business and entrepreneurs must find ways to stay inspired and motivated even in harder economic periods with their business. Bootstrapping and creativity can go far for a business. When money is needed, there are ways to raise it.
So, how do entrepreneurs and businesses go about raising money for business? There are several ways and methods that most follow to securing money for a business. These methods can be applied to try raising money for business. Here are the 10 ways to finance your small business and startups.
10 Ways To Finance Your Small Businesses And Startups
1. SBA Business Loan
A business startup or small business can raise and borrow money through the Small Business Administration (SBA). They offer loans that can help entrepreneurs raise the needed money. These loans typically are more for startups that have been in business for about two years, not early stages of a venture.
2. Friends and Family
This is not always the best choice, but often a very common method to raise capital for a business. Many entrepreneurs borrow money from family and friends to get started or when needed. It is always a choice that is available, in most cases. Friends and family members can be asked for money with specific payback terms.
3. Secondary Income
Entrepreneurs sometimes have a second income and can infuse money into a business startup or small business to fund it. Entrepreneurs can get a job or start a side venture to fund their business. A second source of income can be secured to grow a business or start it.
4. Credit Cards
A very common method to fund a business is often credit cards. Credit Cards are often used to get a business started, fund inventory, complete orders and so on. Credit Cards can be applied for to make funds available to grow a business or start a venture.
5. Selling Belongings
A business sometimes is started or grown by selling belongings. Entrepreneurs and business owners at times sell personal belongings or business assets to raise money for their business. People have sold real estate, stocks, cars, and much more to have access to money for business.
6. Crowd Funding
One of the newest methods to raise money for a business or startup is crowd funding. Crowd funding websites like Kickstarter, Indiegogo, and others are great platforms to gain visibility and raise money. These sites allow businesses to pool investment money from many individuals.
7. Angel Investors
Angel investors are early investment opportunities that entrepreneurs can take advantage of at the beginning. Unlike many other fundraising opportunity for businesses, Angel investors partner in the early stages of a business and startup to give the business the required seed money.
8. Venture Capital
Venture capital money tends to not be for early startups. They investment opportunities are more for established organizations or fast-growing companies with strong exit strategies. Venture Capital firms have requirements, which businesses should understand in depth, when approaching them.
9. Equity Loans
Starting a business is a risk. As entrepreneurs, risk is something that cannot be avoided. When money is needed, business owners, companies, and entrepreneurs can get money through equity loans. This can be home equity, car, boat, office building, and other types.
10. Grants and Contests
Business owners can apply for grants, sponsorships, and enter contests to raise money for their venture. Businesses can sometimes get funded through grants and contests. There are many state and national contests and grant opportunities for startups and small businesses.