One of the most asked questions of entrepreneurs wanting to start up a business, is how do I get funding for it? I mean, there are not many businesses that won’t need any money at all to get started. So it is easy to see why that is a concern for people to be thinking about. While there is no right or wrong when it comes to getting funding for your startup, there are a variety of avenues for you to go down in your quest for funding. So here are some of the most common and reliable ways of getting funding for your startup. Which will work for you?
- Seek a Bank Loan
- Generally, this can be tricky to get unless you have a history of good credit. However, there are sites like smallbusinessloans.co to help that are, obviously, set up to help small businesses get loans. Just remember to check the rates that you’ll be paying, in order to make sure that it is going to be a good fit for you.
- Trade Equity
- This is more commonly known as bartering what you have or your skills, for something that you need. For instance, if you need to get office space, you could do a deal with the owner that you’ll do some computer services for them or take care of maintenance. What you can offer will depend on what your business needs, but can be a good way to save you cash initially.
- Join a Startup Accelerator
- These are cropping up more and more these days, especially for those of you that are straight out of college, much like ycombinator.com, for example. They are often associated with big universities and development programs. Some will just offer advice and resources to get you started. But more and more are helping with the funding side of things too.
- Apply To Investor Groups
- Depending on where in the country (or the world) where you live, there could be some angel-investor groups set up in our local area. However, they are much more likely to be set up in more metropolitan cities. Basically, it is high net-worth individuals that are interested and looking to support start-ups. Network locally and see what is available near you.
- Crowdfunding Campaign
- In the modern day and age that we live in, crowdfunding is growing in popularity too. You could set up a page where people pledge a certain amount of money to your business, in exchange for a share in the business. The only caveat with that is that the business can only get off the ground if there are enough people willing to pledge. So it needs to be an idea that will appeal to people or a business that they can really see the value in.
- Self-Fund
- It can take some time to get things started as you’ll need to save. But many startups are self-funded by the founder. So get saving if this is looking like your only option. You could also speak to friends and family to see if they are able to help.
Six Of The Most Reliable Ways To Fund Your Startup