Starting a new business is difficult. Starting a new business with no funding? Even more difficult. That doesn’t mean it’s impossible though. Entrepreneurs have to start somewhere, and that starting point usually involves figuring out ways to acquire funding for your brand new business idea. Whether you realize it or not, we often have so many options at the tips of our fingers when it comes to acquiring start-up funding. Here are a few great ones so you can know where to start.
Small Business Administration Loan
Due to the government’s interest in the success of small businesses, the Small Business Administration has a wide variety of loan types that are available to help entrepreneurs get started. If you’re a non-profit organization or educational institution, then you might want to explore the small business grants program. This is typically one of the best places to start when you’re trying to get your idea off of the ground.
In the past couple of years, several popular crowdfunding sites have gained widespread popularity among entrepreneurs, the general public, and inventors. Some of these include Fundable, RocketHub, and Indiegogo. Although Kickstarter is still the most popular site, other platforms such as Fundable and Fundly have also gained popularity. Several platforms, such as RocketHub and Indiegogo, allow users to raise funds without end dates. They also allow you to keep all of the money that you’ve raised, even if you don’t reach your goal. Fundly and Fundable are known for helping non-profit organizations, and both are small business-friendly.
Angel investors are typically the most sought-after type of funding option. They are known to be on the lookout for the next great business to invest in. Some of the biggest tech companies, such as Google and Yahoo, have been backed by angel investors. In most cases, an angel investor will typically require you to give them a portion of your company’s equity. This type of funding is typically only allowed if the transactions are registered with the SEC.
Non-profit organizations are typically the target audience for microloan programs. These types of loans are usually granted to individuals who would not typically be considered for a bank loan. Instead of giving a donation, these organizations allow individuals to participate in the economic opportunities that the non-profit can provide.
Friends and Family
More often than not, our friends and family have a vested interest in seeing us succeed. This interest in the success of you and your company can make your friends and family more willing to give you financial support. However, this method can be very challenging and should be thoroughly analyzed before you decide to use it, as getting loved ones involved in your business can sometimes become messy.