Research is important when it comes to venturing a business. Aside from having a clear perception of how you want your company to be recognized and experienced in the marketplace, it is also best to back it up with proven and tested approaches especially when it comes to funding. Now, let’s walk through the different financing methods that may help kick start your business.
Small loans are easy to repay and capable of giving out instant cash for businesses, emergencies, or if you simply need extra money. Here are some of the places where you can apply for one:
- Online Lenders: This is one of the most accessible options for small loans nowadays. Their process is typically fast and convenient all thanks to their technology-driven credit analysis. Their loan offers are flexible to match your credit status.
- Credit Unions: They don’t require you to have perfect credit to be eligible for a loan. Credit Unions keep their rates competitive and they are your next best option if your loan application at the national bank wasn’t a success.
- Payroll Advance: You can ask your employer about their payroll advance policy. Some companies partner with a pay-advance service, while others simply analyse your bank account and take loan repayments from your succeeding paychecks.
Most entrepreneurs opt for bootstrapping to put up their small business. But what is bootstrapping, exactly? It is a situation where an individual starts a company with usually using personal funds or business revenues. In this option, you have to hustle harder and work more hours to yield your desired amount of funds. But if it succeeds and you’re the sole owner, you get 100% of the profit.
Trade Equity or Services
This means you are exchanging your product, service or something you own for something you need. You won’t get paid for the service you provide, but this also means that you don’t need to pay for the services your company receive, either.
Your company receives an automatic boost in-network and brand recognition once you decided to join a business accelerator. On the other hand, you may have to give up a large portion of your company and match it to the needs of the entity. This can be a huge advantage if your goals are in line with that of the incubator programs.
There are many angel investment networks who support start-up businesses that turned into success. Compared to traditional lenders, angel investors are more focused on investing in startups. Their funding process can be slow and your control over the company may be reduced, but you can get huge networking opportunities.
Aside from knowing how to get funded, it’s also essential to develop a concrete business plan, get advice from experienced investors and expand your network with like-minded individuals. Also, keep in mind that maintaining a favorable credit score gives you wider options for funding. With good credit standing, you cannot limit your budding business to just one financing option – you can try combining them, too! Just make sure that you are comfortable with the funding option you choose.