Funding your business is essential to getting it off the ground. To get a good business started up, you’re going to have to first have the money to afford all the things you need to get it going! The first few years of a business ultimately make for a loss, so you have to have a lot of money in reserve to counteract this, but what can you really do? Well, if you keep reading, you’ll find out!
Investing is perhaps the best, but is the rarest way to get funds into your business. An investor is anyone, company or individual, that is willing to put their money into your company to get it going – making sure that it does not fail. Investors often throw a lot of money at the company that they are investing in, so if you’re lucky enough to get an investor, then it’s going to be happy days for you!
Investment deals vary wildly depending upon who it is that is investing in your business, perhaps they are seeking a trade agreement when you get big or maybe a cut of your profits, or perhaps they are funding you to crush a competitor of theirs. So when you’re accepting an investment deal, make sure you know what all of the details are of the investment!
Crowdfunding is a great way to get your company funded and ready to go! Crowdfunding is quite literally that; if people like what you say you are going to offer, they will willingly donate their own money to your cause. While this does not sound particularly spectacular, it is when you think of all the companies that have received millions from crowdfunding websites!
The only thing you need to keep in mind with crowdfunding is that it only works when it’s something that is popular with the public; if your company is one that deals with manufacturing machinery then you’re likely to not get a lot of money, but if it’s for something that has a widespread audience, you can get a lot of money.
The most common and most reliable way to fund your business is through the use of business loans. Sites like businesslineof.credit offer them, and they are used a lot for a reason! They are just a simple loan, however they offer very large amounts of money and long payback times with minimum interest to help your business survive, and only once it’s up and running do the companies then start getting the money back from you. This is one of the simplest and best ways to get off the ground, so why not have a look?
All of these methods are guaranteed to fund your business to ensure that you don’t have to worry about where the next lot of money is going to come from. You can get an investor to fund you to make sure you don’t fail, you could get crowdfunding if you’re the right kind of company or you could go with the safe bet of a business loan.
The SBA does not lend to businesses directly. However, they set the guidelines for loans which are funded by its partners. It’s partners include traditional lenders, community development organizations, and micro-lending institutions. The loans are generally guaranteed which reduces the payback risk, making lenders more inclined to approve the loans. The SBA guaranteed loans are not only available to women-owned businesses, they are offered to all businesses that do not have access to financing with reasonable terms.
If all else fails, you may consider an alternative lender. Starting a new business is risky, and lenders are hesitant to fund new ventures. In fact, according to the Global Entrepreneurship Report, over half of all new businesses shut down within the first 5 years. This makes a new business loan high-risk and difficult to obtain. Some alternative lenders do offer women-owned programs with lower rates, however they may still be much higher than other lenders. Thus, we suggest you start with the options that offer the best rates and work your way down. If an alternative lender is the only way to get financing, then we recommend you strategize your repayment plan and pay off the debt ahead of schedule or refinance the loan to get a better interest rate.
P.S. Another part of having a surviving startup is by having a good website, which you can find out how to make here!