Did you know that 45% of businesses end up shutting down within their first five years of being in business? With so many businesses failing, we are sure that your goal is to not be part of this statistic. If you are in a situation where your company needs money and you are considering business funding, we are here to help your startup company get financed.
Keep reading to learn how you can get funding for your business.
1. Bootstrapping
When you bootstrap you are scraping together all of the personal funds that you have and you are putting them into your business. Usually, this is taken out from your savings accounts, home equity, and credit cards. When you use the money that you have versus borrowing money it will be beneficial because you won't have any monthly payments weighing you down or loans upon loans.
2. Loans
There are plenty of options when it comes to loans and nowadays with the current pandemic, there are also emergency options that you can explore. One place you can apply for a loan is with your current bank or credit union. This is a good place to start especially if you have been banking with them for years because they have access to how you handle your money.
Keep in mind that usually, commercial lenders work best with a business that is established than with a new startup concept.
3. Friends and Family
Sometimes you might feel comfortable asking friends and family, which is a great alternative to traditional lending because you can save hundreds or thousands in interest. The worst a relative or friend can say is "no" and some might not be in a position to fund your entire idea but they might love what you're doing and be able to donate something.
We highly recommend having a business plan in place before you reach out to family and friends. This will help you explain what you are selling and how you will make money.
4. Crowdfunding Sites
In the last few years, crowdfunding sites have become more popular and they are great when it comes to helping businesses raise money in order to launch a specific product. It is good to remember that sometimes crowdfunding can take a lot of time and will require you to put information on the site and share videos or photos to help motivate people to donate.
This is a great way to pre-sell products and use the money you raised to build those products.
Ready to Look for the Right Business Funding?
We hope that our list above of different types of business funding will help you find the perfect way to help your company. Now you can feel confident because you are able to make an informed decision on which business financing route is best for you to secure investment capital or funds.
Did you find this article on finding business funding to be helpful? Browse around the rest of our Startup and Finance section of the Bootstrap Business Blog to catch our latest helpful reads on getting your business financed.
