How To Get Business Funding As A Start Up
Getting business funding for a start up is absolutely brutal. In fact, most start ups often fold because they can’t get the money that they need to fully realize their potential. Start ups will need a lot of funding in some cases, but the fact is that it’s not impossible. Here are some tips for start up owners who want to get business funding, or even just get approved for a loan.
- Look for groups that specialize in start up loans. There are some out there, and as long as you have a good business plan, they should accept you. It’s just like looking for any other business loan, otherwise. Good credit, good assets, and a great business plan will put you closer to getting approval.
- Funding it yourself is still an option. Many startups began by the owner taking out a personal loan, using personal funds, or doing other similar things. There’s no shame in this. Doing this will also allow you to sign for a merchant cash advance or other more attainable small business funding after about three months of your self-funded business being operational. (For the record, this is the best way to get small business funding in most cases.)
- If you have been rejected by typical start up lenders, consider opting for a more “fringe” business funding source. When we say this, we mean that start ups should look towards crowdfunding platforms like Kickstarter, or to seek out venture capitalists or angel investors. The problem is that crowdfunding and angel investor funding is often very difficult to get. So, if this is the route you choose to go, please make sure that you have a secondary business funding method that you will pursue if things don’t work out.
- Trade equity or products for start up aid. Most of the time, you will want to take out a loan so that you can get something that you need for your potential company. If you can barter it, you can bypass the need for a loan altogether.
- Join an incubator. Incubators are the newest way that businesses get into the big leagues. These highly prestigious groups offer start ups business funding, mentorships, and at times, even free advertising. Usually, they are associated with major colleges, which in turn means that this is a great route to choose if you are a college kid.
- Get an advance from a major customer. If you are already in business, getting an advance may be a good idea. The customer who you would pitch to most likely already be buying your services in bulk, so the best bet that you can have is to ask for an advance that can fund your business further, then deliver the goods as soon as possible.
There’s a lot that can be said about startup funding, but one thing that most people won’t say is that it’s easy to obtain. With enough hard work and focus, you will eventually get what you need, though. Trust us on this!