The SBA states that 30% of new businesses fail within their first two years in business.
When you’re a startup, the biggest hurdle to making a fast start is obtaining capital for operations and marketing expenses. If you planned and have the resources, that’s all well and good. But what if you want to start a company and you can’t get funding from a bank? If you can’t secure a credit line, what other methods do you have at your disposal to raise money? Below, we will present you with some smart ways you can explore funding for your company or your next project.
Crowdfunding Websites
Over the last few years, the idea of crowdfunding has become more mainstream. These are websites that provide a platform for you to explain your vision then request the public to fund your creation. Online communities like Kickstarter and IndieGoGo are well-known brands in this niche. However, there are other companies not as well known that allow requests for donations. The intention is to help with the creation or startup of your company or project.
Each organization has distinct benefits and drawbacks. Some websites allow you to raise money without setting a date to end the campaign. Some sites will let you keep all the money donated even if you do not reach your funding goals. Check the fine print of each option crowdfunding carefully to determine the best match for your plans.
Angel Investors
What separates a traditional investor from an angel investor? Primarily, angel investors look for businesses they can personally invest in. An angel investor’s sole purpose for the partnership will be to generate a significant profit for their seed money.
Small Business Administration
The government of the United States wants startup businesses to succeed in stimulating economic growth. Startups are encouraged to learn more about the vast number of programs available. They offer grants, loans, and investment capital to help those launching their own companies. The rules also apply to those whose focus is education or non-profits.
Finance The Business Yourself
If you ask, most lenders are wary of donating money who will not contribute money themselves. Before approaching anyone for funding, it’s best to have some resources on hand.
Ask Family And Friends
If you have family, friends, or a network willing to help support your dream, requesting a loan is an option. However, receiving support from people you have personal relationships with can be a minefield. Be sure to create and adhere to a fair and firm agreement for payment arrangements.
We’ve given you some ways to fund your dream if a traditional bank loan is not an option. Give that idea of yours a chance. If you need help generating funds, try some of the smart strategies listed above.