Ways to Get Finances for Your Own Startup

Starting your own business can be an incredibly exciting adventure. Still, it can also be very difficult, particularly if you don’t have the finances to get your business off the ground.

If you are in this situation and don’t have any way of raising capital to bring your new idea to life, it’s time to consider other financing options. 

The following strategies are the best ways to get finances for your startup:

Crowdfunding

Crowdfunding is an effective way to raise millions of dollars from your most supportive friends, family members, and followers. 

Crowdfunding is a multimillion-dollar industry with thousands of businesses successfully raising money online through Kickstarter and GoFundMe. 

In most cases, people who contribute small amounts of money receive some tangible gift or reward in return—whether it’s an early look at a product or a special edition of it. 

Regardless of what you give your contributors, keep in mind that there are fees involved with crowdfunding campaigns that may cut into your profits.

Loans

Research loan options online and determine which ones work best for your business. Taking out a loan can initially seem overwhelming, but many resources explain what you can find online. 

The first step is determining whether you want to apply for an SBA loan or get an unsecured personal loan from a bank. After that, applying should be relatively painless. Just don't forget about research and planning.

Venture Capital Investing

So you have your idea, and you’re ready to bring it to life. To get to the next step in launching your startup, look for financing from venture capitalists. 

These are individuals or organizations that invest in a company using their own money rather than funds that come from investment firms, banks, or corporations.

Venture capital organizations like StrideEquity can help businesses get off the ground without handing over equity. By joining an investment community, you’ll get the latest information about investment opportunities.

Business Grants

Grants are usually distributed by government organizations, NGOs, or private foundations and range from a few thousand to millions of dollars. 

You'll need to submit a detailed application to be considered, and most applications require non-refundable fees that can add up. If your proposal fits with an organization's focus and area of interest, you’ll stand a good chance of receiving funding.

Starting your own company can seem impossible if you don’t have the capital. However, financing your startup is possible and will help you focus on what matters.

Methods for Obtaining Funding for Your Business

As a business owner, you’re probably well aware of the financial challenges you’ll face when it comes time to start growing your business. That said, there are a few options available when it comes to how you can fund your business and make it a success.

Here are some of the most well-known options for obtaining funding for your business, especially if you’re trying to get things off the ground.

Business Loans

Business loans can be the boost you need to get things off the ground, so long as you meet the requirements set forth by the lender. 

For instance, you may be able to obtain a business loan from a bank or other financial institution such as Pop Funding Solutions if you have good credit ratings and enough collateral to secure the funding. 

The interest rate on a business loan is typically higher than what you would find on a personal loan, but it may be worth the extra cost if you need to acquire more business-related equipment or hire new employees.

Bootstrapping

Bootstrapping is a strategy that involves using existing assets, such as cash reserves and receivables, to fund the startup of a business. 

The goal of bootstrapping is to minimize or completely avoid borrowing money. However, this means that you’ll be missing out on the benefits offered by loans, such as lower interest rates and easier access to funding. 

To bootstrap your business, you must have some assets which you can use to generate revenue.

Venture Capital

Venture capital is a type of funding typically provided to startup companies by private investors. Venture capital is often used to help fund the acquisition of new equipment, inventory, or personnel for a business. 

Venture capitalists are also interested in companies poised for rapid growth and expansion. To receive this type of funding, you’ll need to meet certain criteria, such as having excellent credit ratings and strong business history.

Crowdfunding

Crowdfunding is a form of funding usually provided by the public at large. It’s also sometimes referred to as crowd investing. 

Crowdfunding allows individuals and businesses to raise money by soliciting contributions from a large group of people who might be interested in supporting the business or project. Thousands of companies have been funded through crowdfunding platforms like 

Kickstarter and Indiegogo

As you can see, there are many different ways to raise money. It’s important to understand what type of funding you need and how you can find it. 

The best way to find the right funding is to research and see what options are available. You may consider various sources such as family and friends, business partners, investors, or government agencies.

5 Tips to Starting a Business Without Your Capital

Starting your business can be scary. However, it is a risk worth taking since it will offer you many benefits. For instance, when you start a business, you will achieve financial independence, and you will not have to worry about being supervised by other people.

A business will also offer you true job security and encourage you to be more creative.

You may, however, experience several hurdles when launching this business. For instance, you may find out that you do not have the capital to start this startup. 

That should not make you give up on your idea since one can start a business without their capital. Below are more details on how you can start a business without your own capital.

Quickly Validate a Business Idea

Coming up with a business idea is usually the first step in the entrepreneurial journey. However, before turning this idea into a reality, you should evaluate it. If, after evaluating the idea, you notice that it cannot be quickly validated, drop it and come up with another one.

To come up with an idea that can be quickly validated, think about:

• What you are good at
• Something that will fill up a certain market niche
• Something that will greatly benefit your customers

Analyze the Market You Will Operate In

You have a brilliant business idea but have you thought about your competition? That is a question that a potential investor is likely to ask you before funding your idea. 

Therefore, before you go out to approach investors, analyze the existing market and identify the challenges that you may face after starting your business.

Evaluate Your Financial Requirements

Your loan application can get rejected if you do not clearly evaluate your funding requirements before applying for the loan. Therefore, you should think about the exact amount of money you need to start a business before requesting funding. You should also explain to an investor how you will use the money.

Explore Crowdfunding Platforms

Crowdfunding platforms can help you raise money that you will use to fund your business. For instance, with the help of these platforms, you can sell regulation A+ shares to the general public. 

However, you should read more about buying and selling regulation A+ shares before doing this.

Network With Potential Investors

If you do not have money to fund your business, you should look for people to invest in your business. You can find these people on social networking sites. You may also meet with these people at trade shows and other events.

Lack of capital should not make you give up on starting a business. Instead, you should think about how you will raise capital. Crowdfunding sites can help you raise business capital.

5 Ways to Finance Your Business

Financing is one of the most challenging hurdles that businesses face. But the anxiety is just the tip of the iceberg. Considering the unstable economy, financial insufficiencies often become a roadblock for your business. 

You may start by cutting corners on essential branches of your business growth, or you might have to pass up on a talented workforce simply because you can't afford their expertise.

However, contrary to what you might think about how impossible it is for you to finance your business, there are options available to you. In this article, we’ll take a look at some of the best ways to finance your business in 2020.

Bank Loans

Yes, due to inconsistencies in the economy, getting approved for a bank loan can be difficult. However, that shouldn't keep you from trying. Several loan programs are specially designed for businesses. Plus, while most bank loans are for short terms, they do tend to be all-inclusive. 

The central concept behind bank loans for business is to help the customer capitalize on workforce capital, money management, and other operational requirements. Do make sure to check the interest rates of any bank loans you are offered.

Factoring

In short, factoring is a robust and specialized tool that helps to ensure that you have sufficient cash flow for your business. The main sentiment behind the technique is to sell your invoices to a third party. 

 The third-party pays you a set percentage of the invoice and then takes over recovering the funds. Factoring is not a deal without compromise, but it sure keeps your business running with the necessary hard cash that you receive.

Personal Savings

Perhaps one of the quickest methods of financing your business is to use your personal resources. This can be a crucial way to access money quickly and is an option for all business owners who have personal funds. 



One point to note here is that it’s a bad idea to withdraw money from a retirement plan or similar. You should also only use personal funds if you’re sure that you will be able to withdraw the money from the business at a later date.

Credit Cards

Using a credit card is a risky solution to finance your business, but a readily available option nonetheless. When you practice mindful spending, you can purchase what you need, when you need to, while also enjoying several discounts. 

The biggest downside to credit cards is that if you can’t pay the bills when they come in, you’ll start incurring interest. This can end up costing you more than you’d saved.

Crowdfunding

Crowdfunding is the method of raising a significant sum of money using a collective effort from your friends, family, customers, and individual investors. In order to crowdfund successfully, you’ll typically need to create a website that explains what you will use the funds for, and what the investor will receive should you receive the money you need. 

Some businesses will offer shares in exchange for money, while others will offer gifts. You may also be able to get people to donate for no reward depending on the reason for you needing money.

There are numerous ways to finance your business. The above five are just the most popular.

Recently Diagnosed? 4 Tips for Securing Income While Getting Treatment

Getting a diagnosis of any kind can be difficult. It can signify the need for major changes as well. People who have medical conditions are in many cases unable to maintain their existing jobs. 

If you want to be able to get a steady income during your treatment course, then there are several things that can aid you in a big way. Make a point to explore all of your potential income pathways.

Seek Regular Medical Assistance

It’s crucial for people who have been diagnosed with illnesses of any kinds to seek routine attention from medical professionals. If you have just gotten a diagnosis, then you want to be able to prove it. 

You want to be able to prove that you’re getting treatment for it as well. This may make your journey to getting income go a lot more smoothly. It may minimize setbacks of all kinds.

Speak with a Workers Compensation Attorney

Workers’ compensation is the name of a kind of insurance that can accommodate individuals who have lost out on their wages due to medical conditions and injuries. If you want to get compensation after receiving a diagnosis, then it may help you significantly to set up an appointment with a lawyer. 

Speaking with a workers’ compensation attorney may help you figure out how you can acquire the financial protection you deserve.

Look into Organizations that Can Help You Temporarily

Going through medical treatment of any kind can be taxing. It can eat up so much energy. People who are in the midst of treatment understandably are unable to show up to work daily. 



That’s the reason that there are organizations that are often able to aid them. Research groups that may be able to provide you with financial assistance in your time of need.

Try out Crowdfunding

Getting workers’ compensation insurance is typically a process that requires some time. If you need income quickly, it may help you to test out the concept of crowdfunding. 

There are crowdfunding websites that can aid individuals who are going through medical treatment and who need to stay afloat for a while. It’s not uncommon for people who are going through taxing health concerns to turn to crowdfunding for medical bill coverage and beyond.

Getting a diagnosis can be emotionally draining. It can change your life dramatically, too. If you want to keep your life smooth and comfortable during treatment, then you need to focus on things that can keep your income flowing.

Building a Business: 4 Unique Sources of Startup Capital

There’s no denying that lack of capital can make starting any kind of business tough. It can often even make it impossible. It’s hard for many to admit that finances are 100 percent essential for getting any kind of business started these days. If you’re looking to finance your startup, then it may be time for you to explore these rather interesting options.

Crowdfunding Campaigns

No one in the world knew what “crowdfunding” was merely a few short years ago. The situation has changed drastically in recent times, however. For instance, a best practices crowdfunding campaign is an option among motivated startup entrepreneurs these days. If you want to harness the strength of the Internet, crowds, and numbers in general, then you should orchestrate a crowdfunding campaign as soon as possible.

Angel Investors

If you need startup capital, then you may want to delve into the universe of “angel investors.” Financial assistance from angel investors can do a lot for entrepreneurs who are strapped for cash. 

It can also be helpful to entrepreneurs who may benefit from outside guidance that pertains to rather tough choices. It’s crucial for entrepreneurs to summarize their startup approaches vividly and in manners that make full sense.

Relatives

It doesn’t matter if you have a great aunt who lives three states away. It doesn’t matter if you have a grandfather who used to be a culinary powerhouse. It may work out in your favor to ask family members if they can give you capital for your startup mission. 

Loans from relatives can do a lot for entrepreneurs who do not want to have to panic over the thought of sky-high interest rates. If you get a loan from a relative, he or she may not request any interest at all.

Property Rentals

People who are trying to fund startups often have to use their imaginations as far as financing goes. If you want to gather the wherewithal you need, you should think about renting out your residential property to tenants. This can be a terrific avenue for people who want to get cash relatively swiftly. You may want to temporarily reside with a parent, a sibling, or a close buddy.

Startup capital no longer has to be a mystery to you or to any other bright-eyed company leader. If you’re in need of funds for your business, there are an abundance of ideas out there that may aid you. Don’t turn away from them.

Crowdfunder Success Stories of 2017

The Internet is a perfect vehicle for anything that requires connection with a large number of individuals, so crowdfunding has benefited the lives of many people in the recent years. Here are some successful examples of both business and humanitarian crowdfunding campaigns in 2017.

SONDORS Electric Bike

Raised over a million dollars from more than two thousand people. 

While electric cars are slower and more expensive than their petrol-consuming counterparts, electric bikes are gaining popularity among those riders who fancy their bikes more as a transportation device than as a piece of training equipment. 

Affordable and with a thin lightweight frame, it contains a 350W motor and it can achieve the speed of up to 32 km/h.

GoHenry Children’s Money Card

Children’s money card and app aimed to help parents financially educate their children from an early age. 

The campaign was planned to raise 2 million pounds but ended up raising twice as much. The application has a parent account and a child account. 

Parents can set up regular weekly payments into their kid’s account and monitor and influence their habits by introducing and removing spending limits, restricting where the money can be spent, offering tasks as a way to encourage the kid to work for some extra cash. 

The kids can set saving goals and the app provides graphical charts to tell them how well are they following their plan. Because it is also a regular VISA card, the kids can spend money online within the predetermined rules. If the rules are broken, the application provides an explanation what was done wrong.

Roccbox Portable Oven

Another great idea based on creating a light version of an otherwise expensive and complicated product. A portable oven which produces restaurant-quality pizza in 90 seconds. 

It can also be used to prepare meat, fish, vegetables, and many other types of food. This product was envisioned by Tom Gozney of Gozney Ovens, and funded by more than two thousand people, raising in excess of a million dollars. 

However, the success didn’t come overnight. Gozney and his team experimented with different versions of the oven since 2012 before launching the campaign last year. The oven can be fueled by gas or wood. 

Its main feature, besides being portable, is its interior made of special thermal elements which contain the heat within in a way similar to a traditional stone bake oven.

Elijah DeVaughn Enrolled into Harvard

Kids who grow up in neighborhoods like Compton, California have very little chance to enroll into prestigious universities. But Elijah DeVaughn didn’t give up his dreams and thanks to a humanitarian fundraising campaign . 

They collected $21,000 dollars and managed to get into the university which produced many Nobel Prize laureates, US presidents, and world’s foremost scientists. The crowdfunding is still underway, raising money for his books, clothes, and other ongoing schooling expenses.

Startup Stock Exchange

An innovative approach to both crowdfunding and investing in the share market. The funds are converted into stocks, providing the holder better liquidity than the usual equity crowdfunding ventures, since the stocks can be sold at any time. 

Companies like SSX are using this new investment product to find their place in the business dominated by major online trading platforms like TD Ameritrade, CMC Markets, and others.

PopSLATE 2 – Smart Second Screen for iPhone

Designed for iPhone 6 and 6+, popSLATE offers a unique full-screen e-ink display, e-reader, easy access wallet, reduced battery usage, touchscreen, dashboards, newsfeeds and many other features. 

The model is an improved version of the original popSLATE which was released in 2015. 

The second model had much more success than the first, mostly thanks to the crowdfunding campaign on Indiegogo, which raised more than a million dollars.

Repossession Company Worker Raises Funds to Return an Wlderly Couple’s Car

Jimmy Ford has been working as a repo man for twenty years. When he had to repossess a 1998 Buick from the Kipping family, a couple in their eighties, and heard their story, he felt he needed to do something about it. 

In the most unusual act of kindness, he started a crowdfunding campaign and managed to raise 28000 dollars for the return of their car. 716 people contributed, and it took five months to raise the whole sum.