Skip to main content

Five Proven Ways to Fund Your New Business (guest post)

 


According to the United States Small Business Administration (SBA), in 2010, there are 27.9 million small businesses in the US, and of course, they keep growing day-by-day. Finding the money to start up these business ideas in the minds of many is often one of the first and major problems that entrepreneurs face. This step can be very difficult and frustrating, especially when your expectations are not met or looking for funds in the wrong places. Therefore, I will uncover five proven ways to fund your new business.  



  1. Self-Financing

This way has been proven as a relatively easy way to fund a startup business; however, it comes with a really big risk. You are left hanging if the investment does not pan out. Notwithstanding, this is an attractive option, and it has various paths you can go about it. You can make use of your savings (savings from checking account, family inheritance, or funds lying fallow in an account), use credit cards, selling off personal assets (such as real estate, bonds, stocks, valuable possessions), using other income to fuel your business (like renting a room in your house, sharing your car, being a delivery driver, and so on; although this may not spontaneously fund your business, the income can add up as soon as possible). Self-financing requires determination and sacrifice and also shows your commitment to the business. This commitment is an avenue for winning additional funding from potential investors.

  1. Family and Friends

Another proven way to fund your business is by asking family and friends for investment. Often, the people in your life believe in you and will put their money in someone they trust it with. Besides, they are less likely to demand strict repayment terms or high-interest rates. However, loans from family and friends come with their risks. Your relationships may have to suffer if anything goes wrong. Moreover, you must have an attorney draft a formal agreement for family and friends' loans and treat your investors professionally, separating personal relationships from the business. Platforms like Zirtue can be of food help. 

  1. Funds from customers and suppliers

Have you heard of pre-selling, prepaying for orders, or receiving an advance? These funds are what are used to take care of the transactions. This funding may not be an easy one to come by, but it is worth the while. If your goods or services are unique, or your customers are in dire need of it, they get to prepay before they get the goods. Also, you can get funds for your startup through credit from suppliers. An agreement is made on what, when, and how to go about it, and the goods are released to your company.

  1. Small Business Administration (SBA) loans

This method is one great source of funding for your small business. Often, small business owners in the United States searching for loans have SBA as one of the first places for them to look into. The Small Business Administration has a uniquely designed program that offers microloans to owners of small businesses. The microloans can be up to $50,000 as it varies from state to state and is much easier to get than conventional financing. Also, they come bundled with business training, which can be very useful for first-time entrepreneurs. Although applying for the SBA loan can be very intimidating, the chamber of Commerce has an in-depth guide leading you through the entire process.

  1. Use of Crowdfunding Sites

This method allows for a wider pool of small investors with fewer restrictions. It is ideal in the early stages of a business, especially if you don't qualify for a bank loan, don't have the friends or family willing or capable of providing you the needed funds for your business. On these crowdfunding sites, you are required to set up a page for your business and create promotional materials to accept financial support from anyone who visits the website. Some ways to showcase your business on these sites are good images of what you do using Unsplash, pexels, logocreator.io for a free logo design resource, and likes. Popular crowdfunding sites are Indiegogo and Kickstarter 

Conclusion

Putting together funds for your new business requires critical planning, effort, and a whole lot of endurance. As a diligent entrepreneur, you need to weigh the various options available to fund your business, comparing the benefits and downsides. You must work hard to overcome potential rejection if you want to succeed.



Comments

Popular Posts

All Treats, No Tricks Giveaway Hop Ends 10/31/14!

I'm participating in a really cool Halloween giveaway hop!!!  Are you as excited as I am? I sure hope so!  Okay, so for my prize, I will be giving away a $15 Paypal Gift Card! HOW TO WIN All you have to do is enter my free rafflecopter below. Winner must be 18+. Winner will be contacted via email and has 48 hours to respond before a new winner will be chosen. All Tricks, No Treats Giveaway Hop Since I am part of a GIVEAWAY HOP, there are several other bloggers giving away some great prizes too! You can enter one or all of them--you choose however many you want to enter :) Good Luck to you all! Welcome to the first annual "All Treats, No Tricks" Giveaway Hop, brought to you by The Hopping Bloggers & Up All Night Blogging ! We are a group of bloggers that specialize in giveaway hops - so stay with us and you will have many chances to win some amazing prizes! Each blogger participating in this hop has a giveaway with a priz

Choose the right CBD for your daily routine

Can I ask you a question? Have you heard of the endocannabinoid system? If you thought “no” — You are not alone. Most people have no idea it exists… Yet, your endocannabinoid system (ECS) is a neural network that exists throughout your body and in every organ! Appetite, sleep, immune response, mood and pain are all regulated by your ECS and can become imbalanced. In fact, if you are experiencing issues such as inflammation, tremors, stress, lack of appetite or even pain… Then, it’s very likely that your ECS system is imbalanced. And to put your ECS system back in balance, it is time for you to discover the power of cannabinoids. Today, I hope to make this easier for you… My friends over at Elixinol have an amazing product called 300 mg Cinnamint Hemp Oil Drops Tincture   and  900 mg CBD capsules  that contains full-spectrum, 100% organic hemp cannabinoid extract. And, for a limited time, you can get this product at 15% OFF.  Just make sure to

VoilaVe Triple Action Vitamin C Serum Review

You know how crazy I get when I hear there is another Vitamin C Serum product for me to try out. This one stood out from all the others so far. I was sent a free 1 fl oz bottle of VoilaVe Triple Action Vitamin C Serum for reviewing purposes.  Product Details (as stated by company) Contains 4 kinds of Vitamin C  Pure, undiluted, no fillers, no parabens, no alcohol Vitamin C + Hyaluronic acid Convenient pump top 3 layer protection- outer label, outer wall, and opaque inner bottle holding the serum. This extends the life of the serum. Powerful anti-aging benefits Reduces fine lines, wrinkles, evens out skin tone, brightens dark spots, hyperpigmentation and discoloration, helps clear up acne, shrinks pores and smoothes skin texture No animal testing My Thoughts on This Vitamin C Serum So, I've tried several different Vitamin C Serums but this is my first time using a VoilaVe product. I like the labeling and bottle. I actually thought the bottle looked pr

8 Packing Hacks When Moving #guestpost

Moving is almost rarely enjoyable. I mean, you have to pack up all your stuff just to unpack it again somewhere else? You eat off of paper plates with plastic utensils for your last week because you know your kitchen takes the most to pack. You shift boxes around for weeks while you try and continue living in your home. It’s just not fun. The fun comes on the other end when you get to unpack and decorate somewhere new! Whether you’re moving to a new city, a new apartment, with a significant other, into your first married home…it’s exciting doing something new. Now, to get to the new, and past the terrible process of moving, here are my packing hacks. Label everything! Unless you’re packing things in the boxes they originally came in such as your pans, Keurig or pots make sure to label your boxes with the room, general contents, and whether it’s fragile or not. This will help you to locate it once you move as well as you can tell the content inside without having to open each box and be