The finance and capital behind the business decides the stability of the company. A strong financial backup ensures operations don’t come to an abrupt end and eventually lays the foundation for the success of a startup.
As Rapid Formations suggests in this essential checklist for business startups, funding is one of crucial elements for business success and should not be overlooked. Businesses having little to no funding fail to continue for longer period and ultimately gets scraped. Hence, along with hard work, it is important for you to get adequate reserves for the successful running of your company. Here are 8 ways through which you can easily fund your startup:
1- Take Money From Private Lenders
If you don’t want to get involved in the hassle of government procedures for taking a loan then you can take the help from private money lenders. Loans in this form are both secured and unsecured. Mybusinessfunded.com is one such sercvice that lets you acquire a loan in as little as 30 seconds with no hassles of bad credit history. Moreover, you can also make use of sites like LinkedIn to search for private money lender profiles who might help you financially in your venture.
2- Make Use of Crowdfunding Websites
Crowdfunding is a practice through which many people raise a small number of money to support a business idea. Crowdfunding helps the business create a community around their product or service and generates money. Some of the top sites for crowdfunding are Gofundme.com, Kickstarter, Indiegogo, Teespring, Wishberry, Ketto, Crowdrise, Kiva etc.
3- Bootstrap Your Business
Bootstrapping involves financing your company’s startup and growth with the assistance of input from others. It is one of the most inexpensive ways to ensure a steady cash flow. Trade credit and Factoring are two great ways through which you can smoothly run your business without having to worry for money. However, bootstrapping can be effectively done for a short period of time until your business growth is regular. Continuing with the practice of bootstrapping for longer periods of time can ruin your credit terms with the investors.
4- Leverage Peer-to-Peer Lending
Peer-to-peer lending involves a group of people who are ready to help each other financially. You need to hunt for successful entrepreneurs who are interested in funding startup peers like yours. This way you will be having support from another like minded community who is ready to fund your ideas.
5- Take Money From Your Family and Friends
Perhaps, one of the trusted resources of money you have in your kitty is the one provided by your family and friends. They are the ones you know you personally and who don’t have a doubt on your capabilities. You can generate a decent amount of money by pending it from your friends and families. Once your business is up and running then you can repay the amount taken. The best part is, you don’t have to pay any interest.
6- Receive Help From IRA Financing
IRA stands for Investment Retired Account funds and they are the single most lucrative funding source available for the startups. You need to have a solid business plan and the investors must believe in your ideas in order to release funds from their IRA accounts.
7- Take Help of Venture Capitalists If Your Startup is Returning Good Results
Venture Capitalists and Angel investors fund medium scale startups who are having a stable consumer base. You need to prove the future potential of your business and if the investors believe in your cause, you can receive millions and even billions of funding to take your enterprise to the next level.
8- Get Grants From the Government
Federal grants are economic aids that are issued by the United States Government. The government grants support critical recovery initiatives, innovative research, and many other programs listed in the Catalog of Federal Domestic Assistance (CFDA). If your startup provides services in any of the listed areas then you can opt for a government grant. The federal government typically awards grants to state and local governments, universities, researchers, law enforcement, organizations, and institutions planning major projects that will benefit specific parts of the population or the community as a whole.
It is extremely important for you to plan for your next stage funding because an organization’s growth is largely dependant on the financial stability of the company.
.jpg)
