Starting a business is always really exciting. You are finally setting out to make that dream a reality.
However, it is also entirely normal for you to equally feel nervous and stressed – precisely when it comes to getting the funding you need to keep your startup dreams alive.
Getting startup funding is essential and one of the first priorities that must be addressed. But the average person starting a business does not have large capital simply lying around. This is where looking for other ways to get the funding needed comes into play.
From knowing the best business bank accounts to perfecting the investor pitch for your company, there are many routes you can take to get the funding you need. This is why we are laying out all the things you need to know so that your startup dreams can not only stay alive but become a reality too.
1. Create a Shareable Business Model
One way to really convince investors that you are worth taking a risk on is to make them feel like it is not a risk at all. Instead, show the investors exactly what they will gain by giving you the funding you’re requesting. Lay out your business model and walk them through why it is profitable. Show them how they are going to make a profit on you long-term.
2. Get an Online Loan
Sometimes you need to take the risk yourself. If you struggle to get face time with investors, pursue your options online. Getting an online loan for your startup is one of the most common means of raising capital. While the limits vary based on the providers, it is easier than hassling your bank and more successful than cold-calling investors.
3. Open a Line of Credit
Depending on the type of bank account you open for your business, you can also take out a line of credit that you can tap into on an as-needed basis. The interest you’d accrue will be different than a direct bank loan and allow you to re-use your credit if the debt is paid off on time. This is an excellent option for startup businesses experiencing cash flow problems and needing a backup plan before capital becomes more consistent.
4. Sign Up for a Startup Credit Card
Depending on the type of business bank account you open up, you can also sign up for a business credit card. These credit cards are designed to support the ongoing costs of starting a new business and ensure that day-to-day operations can continue. As long as the credit is paid off before interest accrues, it is easy to get the instant capital needed to stay afloat and build momentum.
5. Ask for a Grant
Another way to get more capital for your startup business is to ask for a small business grant. These grants exist to support small businesses and are funded by various organizations at the government’s local and national levels. The best part about a grant is that it is not required to be paid back like a loan. Instead, gifted capital gives those who need it a head start. While competitive, it is always worth applying for anyway.
6. Seek Support from Family
While you should always be strategic about mixing personal relationships with your work, there is a time and place to seek out family and friends support when raising the capital you need for your startup. The biggest benefit is that there is no interest like lenders or credit cards would require. However, there is the risk of emotions escalating the situation and becoming messy. So approach this route with cautiousness.
7. Open a Business Bank Account
Another smart and streamlined way to raise the capital you need is to open up a business bank account that will help you save more money. This means that ultimately you’ll be better set up for business taxes, stay protected against fraud, grow your company’s credit score and even get access to loans. Plus – you’ll want a bank account for your business so you equally look legit when you do get an investor to support your venture.
Starting a new business requires the right amount of funding. Luckily, these seven ways are all proven to support those in the startup world looking to get the capital needed to make their dreams a reality. From opening up the correct type of bank account to building a line of credit and presenting a solid business strategy to investors, you have plenty of options to pursue to get the funding you are seeking.