Everyone knows that starting a business can be a slippery slope to debt. As such, the process is daunting to new business owners. Unfortunately, not all aspiring entrepreneurs like the idea of taking a loan to Provident Funding their startups, but that’s nothing to worry about.You can even apply for a SBA government-backed loan for startup businesses, like those offered by Kapitus.
Here, we have five ways to make a bank without breaking your bank so you can finance your business.
Crowdfunding
Tapping the neighborhood or your skills in rallying up your social media followers for a cause that is your business is an easy way to finance projects and business ventures.
Crowdfunding is the use of programs, whether conducted online or not, for fundraising campaigns. But with using a platform like Kickstarter or GoFundMe, you may turn your blueprints into pledges that could amount to thousands of bucks or even millions with the help of a professional Kickstarter crowdfunding agency.
Since this is a fundraising campaign, there is no pressure to return the amount garnered. Crowdfunding sites already have a significant presence in the US, making them more accessible to startup owners.
If you have a unique idea and a good product, don’t let it sleep in your portfolio. Let the world see and be part of that next big thing!
Grants
Grants are monetary funding rewarded by the government or other organizations to small businesses. There are various types of grants available for a wide range of companies.
In applying for a grant, business owners must consider the regulations that may come with it and plan to spend the funds. The advantage of acquiring a grant is that it does not need collateral, and no interests are involved.
Pre-selling
It is essentially selling your product or service before it goes live. Pre-selling is a great tool for starting entrepreneurs to assess their product’s performance before the market gets a tangible feel. It’s also a perfect tool to gauge the public’s reception.
Compared to other funding strategies that require an owner to spend hundreds or thousands before they get even started, pre-selling minimizes risk and costs virtually nothing for the entrepreneur to do.
This option also maximizes the opportunity for the development of the product or service. Since you are already advertising your business, it is also a way to attract potential investors who might be interested in the product.
Venture Capitalists
Venture capitalists are large private companies that fund smaller companies or startup businesses with high growth potential in the market in exchange for equity stakes.
The terms of the amount of capital and percentage of ownership would come from the company’s business assessment. However, the parties involved can always negotiate until they can agree to a certain amount.
Angel Investors
An angel investor has a high net worth and therefore comes in aid of small or starting business ventures in exchange for equity or a higher ROI. They are less formal compared to venture capitalists and offer hands-on guidance to the business as well. It is common for angel investors to have a close personal relationship with the entrepreneur, allowing for more lenient terms surrounding their agreement.
Takeaway
All the above potential startup sources would still rely on chance and your presentation. If any of the above is not a fit or did not work for your business, it may not be that harmful to apply for quick cash loans online to get the company running instead of doing nothing. Just learn how to manage your finances and remember to pay the amount owing before it is due.
