So you want to get funding for your small business? This page presents some options you have at your disposal:
1. ‘Crowdfund’ your business needs
This is an innovative concept and as such, it works well and has the most favorable pay off there is.
The term crowdfunding means getting small amounts of money from lots of people and as a result, raising a lot of money.
This concept and the ability to raise money online has been made a reality by Go Get Funding.
Go Get Funding lets you raise money for ‘everyday, to life-changing plans and projects’ and they have a section for business and startup funding.
The essential point to getting the funding you need is to create a great ‘funding project’. You have to tell your story and explain why your business is worth funding in order to get pledges from strangers.
The really good part is that you don’t have to pay any money of the money you raise back to anyone. You offer what’s called rewards that are supposed to be thoughtful and unique incentives for people to pledge.
For example, I could offer anyone that pledges over $500 a year of free meals at my new restaurant. Similarly, I could put the name of anyone that pledges more that $1000 on a plaque inside my new business.
It’s also recommended that you share funding projects with your friends and family to get the initial pledges going and to build momentum.
Our last vital tip to raising money on Go Get Funding is to make your project credible by creating videos explaining who you are, showing how the money will be used and detailing the rewards on offer. No one wants to contribute based off a few pictures and text.
2. Get a business loan
This is the traditional way of getting funding for your small business; getting a business loan.
You can sometimes get a business loan online but you’ll probably need to go into your bank if the loan is of significant value.
Before you go, you’ll need to create a robust business plan that will have to face up to scrutiny. Make sure you have reasonable assumptions based off reliable data. You have to show that you’ve thought through all elements of the business including, but not limited to, employee costs, operating costs, variable costs, seasonal revenue fluctuations and more.
Also, it’s important to remember that the bank manager will be investing in you so you need to come across as a professional and competent person. Rehearse your presentation and be prepared to answer questions about your business and finances.
Getting a business loan is a quick way to meet your financial needs but make sure you plan out the repayment schedule and all cashflow movements.
As I’m sure you’ve heard before, cash is the life-blood of businesses and without it your business can swiftly pass away!
3. Get a business grant
If you fall into this category, you’re a very lucky soul. Nothing feels quite like getting a hit of ‘money for nothing’ in the form of a grant. However, unfortunately, few businesses fall into this category.
To get a business grant you typically need to be involved in something for the ‘greater good’. For example, if you are involved in innovation, research and development.
Competition for getting a grant is tough but if you think you could be eligible, it’s worth giving it a shot. Visit your relevant .gov website for more information. Here are the relevant areas for US and UK inquiries.
4. Get money from friends and family
This is one that makes most lists of raising funding so we thought we’d include it here too.
If you’ve considered raising funds from friends and family, you’re better off referring to point 1 and focusing your efforts through Go Get Funding in order to open up the chance of getting funding from strangers too.
Furthermore, friends and family are more likely to pledge if there’s a cool reward associated with it!
5. Use you assets
If you’ve got valuable assets, you could leverage them in order to finance your business.
For example, you could sell the car you don’t need to remortgage your home to release the money you need.
Just make sure that you don’t sell anything you really need and that the financial burden or remortgaging doesn’t become too much for you to handle.
You could also consider asset based lending. That’s where a lender accepts assets as collateral in exchange for a loan.
6. Venture capital
This option is available to businesses that have significant upside potential and be growing fast.
A venture capital firm would offer funding in exchange for a stake in the company. Sometimes, they may also offer advice to the company to help ensure it reaches its goals – at the end of the day the investors money is at stake as well.
Here is a list of the top 100 venture capital firms.
7. Angel investors
Although often hard to find, angel investors are wealthy individuals that invest in businesses they believe in.
If you’ve seen the popular TV program Dragons Den, that’s a good way to understand the principles of angel investment.
If you’re interested in this funding method, check out this useful guide to finding an angel investor.
Go Get Funding Raise money for everyday, to life-changing plans and projects
