Funding is no easy achievement. It takes patience, determination, networking, paperwork, and the list goes on and on. If you are an entrepreneur searching for funding in order to get your new startup off the ground, you are probably familiar with the challenges.
“Every startup has financial business goals to be achieved. Hence, to attain the same, it is essential to seek funding,” Jyoti Valecha explained in Entrepreneur.com. “This funding process ought to take place in a timely manner so that it becomes easier to plan financial tasks in a simple way.”
Are you an entrepreneur ready for funding but not sure where to start? No worries, because we compiled a list of six entrepreneur funding options to launch that startup. Let’s take a closer look!
1. Start with your saving account
Instead of jumping right into investors or bank loans, look at how much you can crape together from your savings account. This method allows you to keep 100 percent ownership of your company as its founder, you have no one to ask why and where you are allocating those funds to, and you have no interest rates hanging over your head.
Not too bad. The only downside is that if your business fails, you will no longer have a nest egg to use for your next business endeavor.
2. Consider bank statement loans
Some entrepreneurs don’t need a massive loan to achieve what they need to achieve in the beginning growth stages of their startup. They may find that using personal funds and combining them with a bank statement loan a whole lot easier than crowdfunding or finding an angel investor.
Bank statement loans can give entrepreneurs quick funding using a business bank statement, personal bank statement, or any statement from a previous month. Normally entrepreneurs pay themselves, so the business bank statement may be larger. This funding option is definitely worth considering.
3. Give crowdfunding a go
Crowdfunding is still a great way for entrepreneurs to get funding for their startups. There is, however, a catch. Crowdfunding is not a walk in the park. You need to essentially market your crowdfunding campaign as much as you are marketing your startup.
This funding option for startups can eat up a lot of time. But when successful, you can get the funding you need and not give up any shares of your business before you get started.
4. Find an angel investor
Angel investors are definitely great to have in your corner when it comes to funding and growing your startup into a successful business. Angels are also great for entrepreneurs looking for just a little bit of funding, not millions of dollars. For example, most angel investors give $25,000 to $100,000 in funding.
Besides the funding, you will get access to the angel’s network of professionals, since they want you to succeed to get a return on their investment. And angel investors are pretty relaxed about terms of the funding as well.
5. Go to your bank and see about a loan
Crowdfunding, bank statement loans, angel investors, these are all great funding options. But don’t forget about the traditional bank loan. If you have good credit and some success already with your business, a business loan from your personal bank could be worthwhile.
There are a number of funding options, it’s a fast process to get qualified and receive your cash, and you don’t need to give out any equity. There are downsides though. For instance, you need to know the ins and outs of the loan you choose, in order not to fall into a money trap.
6. Don’t forget the small business admin loan
The small business administration, or better known as the SBA loan is a government issued type of funding designed to help small businesses. These types of loans are not bad. It can be a great stepping stone to a private bank loan, and it gets you in the door with other lenders. But getting an SBA loan is pretty challenging, so be ready to do some paperwork.
In Conclusion . . .
There are a whole lot of ways you can go about getting funding for your startup as an entrepreneur. The above six entrepreneur funding options are not the be-all, end-all for funding. There are definitely more to be had, but these are among the most common and easiest to employ.
The main aim, however, is for you to decide what funding option is right for you and your startup at the time you need it. If you have had a bit of success, maybe an angel investor is best. If you have zero profits coming in, crowdfunding or personal funding could be the short-term answer. It all depends on the moment.