So, you have a fantastic idea for a new company and you are eager to get this business up and running. There’s just one problem: you need money to start your business. Whether you are dreaming of opening a quaint new coffee shop or a new tech business, most entrepreneurs will need funding to get their business off the ground. This funding can come in a variety of forms, each with its own advantages for your unique business venture. To help you better understand which is right for you, here are some ways to look for funding and how to decide which might be the best fit for your business.
You may be able to find some great options with a traditional lender. If you have a good credit history, it may be possible to fund your business with a traditional lender, like a bank. This is a great option for a lower-cost, lower-risk business. Assuming your credit scores are higher than 700, you may be able to find some good interest rates with a traditional lender.
If you are only in need of a small amount of money, there are several micro-loan organizations available online that lend to start-ups and entrepreneurs. There are also crowdfunding sites that provide you with a platform to raise money from individuals and supporters across the web. You will do this by setting up a campaign to raise money for your business.
Are you involved in your local entrepreneurial community? If so, you may be able to find people who would be willing to invest in your idea. Research investors and venture capitalists in your area and prepare to bring a copy of your business model to them. Not only do these investors offer money, but they also have business experience and expertise in areas in which they invest and they will be more of an involved presence in your business.
Angel investors are high-net-worth individuals who will get an equity stake in your company in exchange for their financing. Like investors, they will be involved in some aspects of your business and will be seeking to make a profit from their investment. Again, you will need to be prepared to present a solid business plan and a case for why they should invest in you.
Small Business Grants
Many government entities, nonprofits, and corporations offer money to help entrepreneurs grow or start small businesses. Some small business grants are open to anyone while others specifically target small businesses owned by minorities, women, or veterans. You can check with the grants.gov website for federal grant opportunities.