5 Ideas for Funding Your Small Business Start Up

Maggie Martin
Maggie Martin

A lot of people often have great ideas for new businesses but are limited by capital and start up resources. There are various creative ways to fund a new business start up.

Bank Loans and credit cards

If you have a good credit history, you can apply for a bank loan to finance your new business. Banks often offer loans at a certain interest rate for financing various activities including business start ups. There are also many other financial institutions that focus on giving loans for businesses including credit card line of credit.

Trading equity/service for financial help in start up

You can alternatively barter your skills for the financial help you need to get your business going. You can sell part of your business for legal and accounting support. You can also offer part of your services to a resource person to gain access to free resources such as office space or internet so you can reduce your capital costs for investing in your new business.

Pitch to investors

Pitching to investors is all about creating a business plan that shows how well your idea will make money. Investors are often keen on the process involved and how these translates to result more over the type of product or service making the business plan extremely crucial. The investor is usually someone who sees the value in your idea and is willing to bet their cash on it. They are taking a big risk since the business may not go as expected so a lot of convincing may be necessary.

Start a crowdfunding campaign

If you have a business idea that may be of benefit and interest to the entire community, crowdfunding online can be one of the best ways to fund a new business start up. Crowdfunding campaigns encourage people to make pledges to the start up, pre-order the products and give donations. You can also encourage them to participate by offering small rewards such as T-shirts.

Friend and Family

Pitching your idea to friends and family is a great way to get funding. One of the best things about borrowing from friends and family is that these loans often come with very few terms or none at all. Some family members may be willing to support you all the way while expecting nothing in return. Seeking funds from family and friends especially during the early stages of startup can help you organize your new business more effectively.

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