How to find funding to start a startup or business
Posted: Tue Dec 03, 2024 5:44 am
Are you looking for money to start or boost your business? We know that it is not easy to get a loan from the bank to start and precisely, one of the most common reasons why many small businesses fail is because they undercapitalize their businesses.
Despite this, more than 600,000 businesses are started every year. Therefore, it is important that as an entrepreneur you know all the alternatives available to get the money you need to start or boost your startup without having to resort to bank loans or million-dollar debts with your credit card.
While every business is different, each one can find a unique way to get enough capital to start and this is what we will basically teach you in this article. Below, we show you 7 ways to find financing to start or boost your business.
How to find funding for a startup
1. Look for local partners or investors
If your business concept is not in a huge market, has high and rapid growth potential, or has a lot of property assets , then you should look for local partners or investors . Get out and work in your community to find local business owners or individuals who are interested in starting to grow their money.
Don't be afraid to ask. You never know who has a ton of money and the desire to put it to work!
2. Professional social networks
LinkedIn is not only a great platform for job hunting but also for finding investors. There are also other platforms like EFactor , Xin g , StartupNation , Cofoundr , and Meetup that allow you to connect with all kinds of investors across all industry specializations and in any business segment.
Many of these professional social cfo email list networks even connect you with investors from other countries who are interested in participating in the global business environment and often intend to internationalize your idea.
3. Join a startup incubator
There are organizations like Y Combinator that are very popular these days and they often partner with major universities, community development organizations, or even large corporations to provide free resources to startups including office facilities, consulting, and even money.
Startup incubators are a great alternative to find financing to start or boost your entrepreneurial business.
4. Start an online crowdfunding campaign
This is one of the most popular sources for finding funding where anyone can participate. There are websites dedicated to crowdfunding which offer access to many types of investors .
Each crowdfunding site has its own approach and way of incentivizing investors, so study each one carefully to see which one most closely aligns with your strategic goals and verticals.
Some sites for crowdfunding are Kickstarter and Indiegogo .
5. Apply for a small business grant
These are government funds intended to support new technologies and important causes, such as education, medicine, and social needs . A good place to start looking is Grants.gov , which is a searchable directory of more than 1,000 federal grant programs. The process is lengthy, but it's worth looking through and trying.
6. Join startup launch platforms
Many companies have launched platforms that provide information and research on entrepreneurial businesses that include ways to connect with investors.
For example, Startups.com is a platform that works as a channel to efficiently locate investors. It has 13.9 million members and offers an extraordinary opportunity to meet some investors, both for funding and for mentors.
Another such platform is Gust , which has already invested $1.8 billion in startups.
7. Finance your business yourself
Today, the costs of starting a business are at an all-time low, and over 90% of startups are self-funded (also called bootstrapping) . Saving up some money to get started may take a little more time, but the big advantage is that you won’t have to answer to anyone.
Your business will be uniquely yours!
8. Use the 3Fs: “Family, friends and fools”
Another valid option is to resort to one of the 3Fs or all 3Fs at the same time, that is, Family, Friends and Fools . If you do not have enough money to achieve your dream, your family and friends will surely help you. They will always be willing to help you.
As you can see, there are many alternatives you can consider to find financing to start or boost your business. None of them is an easy path, all of them require work and commitment on your part.
With all these options to choose from, there are no excuses to start living your dream and become a true entrepreneur!
Despite this, more than 600,000 businesses are started every year. Therefore, it is important that as an entrepreneur you know all the alternatives available to get the money you need to start or boost your startup without having to resort to bank loans or million-dollar debts with your credit card.
While every business is different, each one can find a unique way to get enough capital to start and this is what we will basically teach you in this article. Below, we show you 7 ways to find financing to start or boost your business.
How to find funding for a startup
1. Look for local partners or investors
If your business concept is not in a huge market, has high and rapid growth potential, or has a lot of property assets , then you should look for local partners or investors . Get out and work in your community to find local business owners or individuals who are interested in starting to grow their money.
Don't be afraid to ask. You never know who has a ton of money and the desire to put it to work!
2. Professional social networks
LinkedIn is not only a great platform for job hunting but also for finding investors. There are also other platforms like EFactor , Xin g , StartupNation , Cofoundr , and Meetup that allow you to connect with all kinds of investors across all industry specializations and in any business segment.
Many of these professional social cfo email list networks even connect you with investors from other countries who are interested in participating in the global business environment and often intend to internationalize your idea.
3. Join a startup incubator
There are organizations like Y Combinator that are very popular these days and they often partner with major universities, community development organizations, or even large corporations to provide free resources to startups including office facilities, consulting, and even money.
Startup incubators are a great alternative to find financing to start or boost your entrepreneurial business.
4. Start an online crowdfunding campaign
This is one of the most popular sources for finding funding where anyone can participate. There are websites dedicated to crowdfunding which offer access to many types of investors .
Each crowdfunding site has its own approach and way of incentivizing investors, so study each one carefully to see which one most closely aligns with your strategic goals and verticals.
Some sites for crowdfunding are Kickstarter and Indiegogo .
5. Apply for a small business grant
These are government funds intended to support new technologies and important causes, such as education, medicine, and social needs . A good place to start looking is Grants.gov , which is a searchable directory of more than 1,000 federal grant programs. The process is lengthy, but it's worth looking through and trying.
6. Join startup launch platforms
Many companies have launched platforms that provide information and research on entrepreneurial businesses that include ways to connect with investors.
For example, Startups.com is a platform that works as a channel to efficiently locate investors. It has 13.9 million members and offers an extraordinary opportunity to meet some investors, both for funding and for mentors.
Another such platform is Gust , which has already invested $1.8 billion in startups.
7. Finance your business yourself
Today, the costs of starting a business are at an all-time low, and over 90% of startups are self-funded (also called bootstrapping) . Saving up some money to get started may take a little more time, but the big advantage is that you won’t have to answer to anyone.
Your business will be uniquely yours!
8. Use the 3Fs: “Family, friends and fools”
Another valid option is to resort to one of the 3Fs or all 3Fs at the same time, that is, Family, Friends and Fools . If you do not have enough money to achieve your dream, your family and friends will surely help you. They will always be willing to help you.
As you can see, there are many alternatives you can consider to find financing to start or boost your business. None of them is an easy path, all of them require work and commitment on your part.
With all these options to choose from, there are no excuses to start living your dream and become a true entrepreneur!