Six Ways to Raise Money for a Small Business
When just starting out, a small business can feel like a fragile entity. Raising capital is one of the biggest concerns for running a small business. Thankfully, there are more than a few helpful tips out there that can help you get the money you need to help your business grow.
1. Launch a Crowdfunding Campaign
Crowdfunding presents the opportunity to connect with people who appreciate the purpose of your business and are like-minded to your cause. Crowdfunding gives those people something to get behind, to support by making a donation to the cause.
You can even include milestone rewards such as a shirt for $100, a personalized message for $200, and so on to present more interest to those who may be contributing.
2. Bootstrap it
This is understandably a scary proposition, but not every business endeavor requires a lot of startup capital. This is the method of starting a business with personal savings and luck.
While making the full financial investment yourself can be scary, it also means that you have 100% freedom to take on the projects that you want and control the business as you see fit.
3. Ask Friends or Family
This might seem like a less-than-desirable endeavor, but family that has the money to loan you can be the most trustworthy of options. Be sure to create a detailed repayment plan to avoid those nasty fallouts that can occur over money.
Lending from someone you trust can also give you peace of mind and flexibility depending on the situation as well.
4. Get a Loan
Businesses take out loans all the time. Short-term loans are generally pretty easy to get and can help get you off the ground. If you need something more long-term, it will take a good credit score and strong revenues, but it could help keep your business running strong when trying to take on a new endeavor.
5. Venture Capitalists
Venture capitalists can be a great way to find funding, but they may decide on more mature companies. Make sure to detail any opportunities that are there for your company and why investing would be a good idea.
If that doesn’t work out, there is a similar alternative…
6. Angel Investors
Angel investors are very similar to Venture Capitalists, but the former is usually someone who operates alone and invests in businesses that haven’t started yet. Your pitch and enthusiasm are what will capture their attention, so make sure you put your best foot forward in the presentation.