Have you been trying to fund your new company, but aren’t having much luck? Read on to learn 5 creative ways to raise small business capital.
Starting a business can be a thrill.
Coming up with the funds to get it off the ground – not so much.
As exciting and potentially profitable this venture can be, it’s no secret that launching a profitable business is tough. Sadly, about 80 percent of small businesses fail within the first year and a half of opening their doors.
Because of stats like these, it can be hard to come up with funding for a new business. Banks and investors don’t want to throw their money away.
If you’re starting a new business, but don’t know how to come up with the cash to make it fly, keep reading. Check out these five ways to raise small business capital:
Bet on Yourself
The simplest, least restrictive way to fund your business is to use your own money.
You can dip into your savings or retirement funds, take out a home equity loan, or sell some of your stuff – do whatever it takes.
Getting your business up and running with no outside funding can be rewarding both personally and financially.
This isn’t always an option though, especially if your business requires a lot of equipment or a physical location, such as a restaurant or retail store.
Crowdfunding has changed the way people think about funding. And with good reason. This strategy allows entrepreneurs to quickly tap into resources from around the globe.
Crowdfunding has actually now surpassed funding raised from traditional venture capital firms.
If you have an interesting idea, you can market it effectively through one of the many crowdfunding sites. Kickstarter and GoFundMe are worth a shot.
Check with Friends and Family
Perhaps the least advisable way, for those who’ve been there, to come up with business capital is to ask for help from family or friends.
If you know someone you can count on, this is still a viable option. Just be sure to make your agreement formal and legally binding to protect everyone involved.
Find a Competition or Grant
Another increasingly popular way to fund a business is through a competition or grant.
Many local business associations and universities sponsor competitions or grants for budding entrepreneurs to compete for funding. You’ll need to develop a solid pitch and presentation if you go this route.
Small Business Loans
Another reliable option for small business capital are loans from banks or other investment firms.
Options vary greatly when it comes to borrowing money. Just be aware that you’ll likely need to have some sort of capital and a solid plan in place to go with a traditional loan.
Sunwise Capital small business loans offer a few solid options for entrepreneurs looking to fund their next venture. Check them out to learn more.
Get Creative to Raise Small Business Capital
Coming up with business capital is one of the biggest hurdles entrepreneurs face. Sometimes you need to get creative or draw from multiple sources.
If you’re launching a new small business, check out our articles for more insight on getting your next venture off the ground.