When it comes to funding, there are many approaches you can take. Besides the fact that every business has unique funding needs, each funding option differs in availability, terms, amounts of funding, and eligibility criteria. Here you will find a list of variety of places to help you research and narrow your options down to pick the best one for your business.
Determine How Much Funding You Need
Estimating your startup costs is not only necessary for financial plan but it can help you determine how much funding you actually need. Knowing this will help you narrow down potential options simply based on the amount they offer.
Having a cohesive financial plan can improve your chances of being approved for funding. It showcases forward-thinking on your part and traditional loans, investors, and other funds that require a business plan.
Traditional business loans are widely available options for people looking for funding. There are several loan options you will want to consider.
Small Business Administration loans are one of the first places that small business owners in the United States think of when seeking a loan. This is a great option if you qualify. If you are rejected, there are ways to improve your chances of being approved if you reapply.
Bank loans may be the most obvious solution for business owners looking for funding. Depending on the lender there are funds set aside that are strictly for small businesses only. You have a better chance of getting approved for a loan if you go to a bank and meet with a lender in personal. Do your research and chat with a few banks to find the best fit for you.
Small business owners can also seek grants to support their business idea. These are difficult to acquire and include a specific eligibility requirement but can be a good funding option to consider.
Government Small Business Grants
The most widely available grants are provided by the government. However, these grants are specific to certain industries which means you need to look into what is available for the type of business you have.
Grants for Women
If you are a female business owner and entrepreneur, you can take advantage of grants designed for women. The application process is simple and can be filled out online. A popular one is called the Amber Grant.
Crowdfunding sites are also a great way to get the funding you need. You can create promotional materials and set up a page for your business or project to accept financial backing from those who visit the site. Be sure to reach the fine print for the crowdfunding sites as you decide which is right for you.
Indiegogo is a popular crowdfunding option. On this platform you can create a profile, tell your story, set a fundraising goal, and ask for donations. There is a fee structure associated with this site so be sure to read that.
This is another popular option out there similar to Indiegogo. This platform has a lot of campaigns so you will want to evaluate the website to make sure that it is the right fit for your business.
Bootstrapping is doing anything you can think of to get the money you need for your business. The following are common examples of what people consider for their business.
Friends and family
Friends and family is a great option to get funding for your business. You will need to sell them the idea of your business so that they feel like it is worth their investment.
Business line of credit
A business line of credit is a good option for those that have good credit and need the funds quickly.
Using savings/selling assets
This option can be risky but it is also a good option if you have personal savings or existing assets that you can use to fund your business.
Start a side hustle
You can also consider starting a side hustle to get income to fund your business.