People start businesses all the time, but there is an even greater number of people who wish to start businesses but do not know how to acquire financing. If this sounds like you, you’ll be happy to know that there are many ways to get money for your venture. Some are easy to try, others more difficult. But if you explore all of these options, you should be able to find a way to get the money you need for the work you need to do.
- Traditional Loans. The most obvious way to get a loan is to get one from a bank. But what happens if you are denied by the bank for bad credit or some other reason? In this case, there are independent lenders who may still lend to you. Look at the ones in your area and on the internet. If your credit is poor, short term loans for bad credit individuals are widely available, but these may be more appropriate to help entrepreneurs make ends meet while their business is getting off the ground.
- Crowdfunding. Crowdfunding is an option not often explored by conventional brick and mortar businesses, but it’s becoming a favorite for newer businesses that have a strong online presence or exist only digitally. Sites like Kickstarter or Indiegogo have transformed the way people start businesses, whether they be small or not-so-small. We wouldn’t recommend this route for anyone with a larger business proposition, but for first timers with a simple service or product, this can be the way to go.
- ICO. ICOs or Initial Coin Offerings have become a new way for digital businesses to raise money, even before they have a working product. ICOs occur in the cryptocurrency space, and only make sense for companies who need to create a digital token or currency for the operation of their business. This may not apply to your business, but if it does, you may very well be able to get a lot of money. During the past year, various ICOs have raised tens of millions of dollars, individually. Not every ICO is a success and not every ICO is legitimate (there are scammers who are usually caught by the community), but the ones that succeed can secure years worth of funding.
- Venture Capital. Venture capital is obviously one way that businesses raise money. If you have a great idea and have already taken specific steps to realize it, then you may be a good candidate. If you have a smaller business proposition, you may know people like family or friends who could act as angel investors or venture capitalists in your small venture. We recommend not asking for money from loved ones unless you can deliver, however. Otherwise, go for it.
There are tons of ways to raise money. If you have a great business that only needs money to exist and grow, then it’s time to explore all of your options and choose the one that’s most likely to get you the results you need.