5 Ways to Fund Your Business

Securing funds for your new business can be one of the most important and most frightening steps in the startup process.  We all know there are many risks involved with starting a business, but those risks become very real once you've earned some startup capital.  At that point you don't have much time to waste and you must be ready to move forward.  Before we worry about all that, how might we go about funding a small business?  Here are 5 great ways to fund your business:


Small Business Loans

Small business loans can provide a significant amount of capital to fund your business at a relatively low interest rate.  A small business loan is always a viable funding option, because many organizations are willing to help entrepreneurs start new businesses.



Crowdfunding Platforms 

Crowdfunding platforms like GoFundMe, Kickstarter, and Indiegogo provide the opportunity to solicit funding from the masses for any cause you wish to fund.  There are a downsides when it comes to the use of crowdfunding platforms, but either way, it is worth trying.


Advance Orders

If you have already established customer interest and a strong customer base you can take advance orders or pre-sale.  Advance orders are purchases of product or service before it becomes publicly available for purchase.  This funding option provides you with working capital and helps to validate you business before the startup process is complete.


Personal Assets and Savings

The simplest form of funding your business is using your own savings and assets to finance your venture.  However, there are significant risks when it comes to funding you business using your own cash and other assets.  Also, you can lower interests rates on your loans by offering up assets such as your car or house as collateral.  Self funding is a viable financing option, but make sure you understand the risks involved with it.


Grants

Grants are made available by non-profit organizations and also the government.  High tech and High impact business ventures can be eligible for grants.  Also, certain cities like Philadelphia and Columbus offer incentives for entrepreneurs to start businesses within those cities.



For more information on small business financing click HERE.