All businesses need funding, not just to get started but to continue to scale. But while it may seem straightforward enough, there’s no such thing as a one-size-fits-all approach. There are a number of startup funding options that differ in availability, terms, funding amounts, and eligibility criteria, depending on your business’s unique funding needs.
Using the wrong funding type can be a big risk for your company, but the inverse is also true. If you can identify the right type for where your business is currently at, it will be a huge boost to your brand’s overall growth and revenue!
If that sounds daunting, don’t worry. You can give yourself a good chance at success as long as you know what to look for and where to look! In today’s blog, we’ll give you a brief overview of 5 types of funding resources you can utilize in your business and hopefully make your funding journey easier. If you want to determine the best option for your company, read on!
Small Business Administration Loans
Love Money
Angel Investors
In this type of funding, your family members or relatives are the ones providing you with the loan. It’s also referred to as patient capital by investors and bankers, pertaining to the money that will be repaid later as your business revenue increases. While there are much fewer hoops to jump through and less paperwork to deal with for this type of loan, keep in mind that it may come with risks to your personal and professional relationship with the lender.
Crowdfunding
Crowdfunding has become popular in the past few years. Crowdfunding sites involve individual investors or private backers purchasing your services or products before they become available. While it allows you more control over your company, the challenge lies in getting people to sign up. It can be time-consuming and costly, and there is no guarantee that you will reach your funding goals.
However, if you pull it off successfully, you will already have guaranteed sales and a dedicated customer base right out of the gate!
Business Incubators
Conclusion
There you have it! The 5 types of funding resources that can help you kickstart your business and scale! These are just some of our top picks—there are other funding options you can explore, so keep an open mind!
And remember, no business is the same and no one funding solution will be a perfect fit for everyone. So take the time to identify what your company truly needs and what you are comfortable with. If you need help deciding which one is for you, I’d be more than happy to help! Just get in touch with me here. Good luck!
