Funding your startup business can be tough.You have to figure out where you are going to find the funds — and then wade through all the preparation, processes and pitches.
To make things easier, you can use a startup cost calculator to help work out your startup costs.
But if you don’t know where to start, or even which option to choose — don’t worry. There are a lot of great options for you to choose from that would suit your startup perfectly and reasons why you should pick them.
1. Solicit venture-capital investors
Consider this in terms of the show Shark Tank, where you go to someone you’d like to invest in your business, present your idea, and convince them to take a chance on you and give you their money.
A great way to go about this is to do some research on who the key players are in the industry you’re entering and contact them about having a pitch meeting. You should already be preparing and practicing your business pitch, of course.
2. Request a small-business grant
Similar to banks and the loans they offer, the government has several grants they give to new businesses, technologies, and good causes to help them fund their new venture.
This can be a great way to fund your startup business as you won’t have to pay back the money or put something up as collateral in case you can’t pay back what you owe a bank if you take out a loan.
3. Fund your startup yourself
Money is tight. But as daunting as it may seem to fund your startup business yourself, doing it this way is a great option to go with and keep 100% of the control.
And while investors are also a great option and won’t demand you do exactly as they say, they will still care about the direction of the business and will want to be heard.
4. Friends and family
While you risk making your relationship awkward with your friends or family members by asking to borrow money from them to fund your business, asking them can still be a good option as they care about you and want you to be successful.
Just try to avoid making any promises you may not be able to keep, like giving an exact date or time frame for when you’ll pay them back. Make sure they are realistic about the expectations.
5. Crowd funding
People love getting behind new businesses, especially when they are passionate about what the business is about and it gives back in a way that they can get behind.
Holding a fundraiser or starting a Kick starter page can be a great way to, not just raise funds for your start up, but also gain publicity and market your business too.
6. Consider your niche
What is your business? Who is your target audience? How involved do you want to be with your customer base? These questions, and many more, are what you have to think about when trying to raise funds for your startup—especially if your business has a very specific purpose.
Not only will this will help you stay true to what you originally wanted to do with your business, while also evolving and getting better at what you do, it will also help you interact with your target audience better throughout your business’ lifespan.
7. Enter a contest
While it may seem cheesy, entering a contest that offers a cash prize can help you raise funds for your start-up business and get it off the ground, regardless of whether it’s for new businesses or just a chance to win money — as it will require you to do relatively little. And you never know your luck.
