From starting your business to fulfilling a product order, every business needs a consistent flow of funds. Getting those funds will often take more than a simple loan to sort out, especially if you don’t have a lot of capital to work with.
Finding solid and consistent ways to raise funds will be the saving grace of any business at any stage, so today we’re going to break down what special fundraising business owners may have access to.
Each of these 7 tips works at various stages of a business’s life and for different reasons. Knowing when and where to use them will be key to your business’s success.
Crowdfunding has become popular with places like GoFundMe and Kickstarter becoming so successful. The idea is to showcase your business or product on a media platform and have interested customers fund your business through pre-purchases.
This method can be great with a solid product plan. The bigger of an audience you already have, the stronger it will be.
- Angel Investors
Angel investors are big money business investors that look to trade in a major loan to start or improve your business. In exchange, they often look for equity in your company, giving them a financial stake in your company’s future.
These can often be great deals overall but they come with a solid price. Another investor’s stake in your company can reduce profit gain and keep you locked into a business partner you didn’t plan for.
Keep in mind, angel investors should never be under the table. All angel investors will need registration with the Securities and Exchange Commission. Look for investment firms like https://www.facebook.com/RightwayFundingLLC/ for solid examples.
- Venture Capitalists
Venture capitalists share a lot of similarities with angel investors. What makes them different is that venture capitalists often want a voice and a measure of control within the company. Instead of a silent investor, a venture capitalist becomes a full-on business partner who will manage your company alongside you.
- Small Business Administration
The Small Business Administration, or SBA, is a government institution that specializes in small business loans. While qualifying for these loans still requires certain minimums, they are a consistent and stable source of major small business loans.
Microloans are small loans aimed at new businesses and other ventures. They are easy to obtain and can do well for getting out of rough patches or small setbacks.
- Personal Financing
A business is a risky venture and starting one can be a very uncertain period. When everyone else is uncertain of your investment, sometimes the best route is to invest in yourself.
Whether you refinance, put a mortgage on your home, or even build up savings the old fashioned way, sometimes your most secure way of raising funds is to find the money from your own assets.
- Vendor Loans
This final tip works best with new product lines for already existing companies. Working with vendors to get you advances on materials and resources to get the first wave of products out can be a simple and easy way to get you started.
Finding Ways to Raise Funds for a Better Business Future
With these ways to raise funds, you can keep your business rolling. Whether you are starting out, going through a big and expensive shift, or need to recover from some heavy hits, these fundraising tips will keep you in the game.
For all things business, you need to keep yourself informed and always be on the lookout for an edge. We here at DM Productions have what you need. Check out our other articles today!