Explore These Options for Funding

– Contributed content –

(Public Domain Pictures, Pixabay)

8 Jan. 2020. One of the biggest challenges any entrepreneur faces is finding the money they require to get their new business off the ground.

Starting a business is expensive, from the cost of office space to paying staff and utilities, not to mention production and advertising costs – and that’s just the tip of the iceberg – so it’s not surprising that so many entrepreneurs fail to get their company off the ground.

That being said, plenty of entrepreneurs do get a break and are able to find the funds they require. Obviously, your first port of call for funding is probably going to be the bank, but if that doesn’t work out, here are some other options to explore:

Crowdfunding

Crowdfunding has become big business in recent years with sites like Fundly and Kickstarter helping many an entrepreneur reach their dreams. If you have a strong vision of your company’s future and you can share that with your audience on one such platform, there is a good chance that you could secure funding from individuals around the world who want to see your ideas become a reality.

Angel investors

Angel investors are individuals who loan their own money to entrepreneurs they think could make it in the business world. Quite often, they are successful entrepreneurs in their own right and they often will offer advice as well as money, which is an added bonus of going down this route. Just remember that any transaction you make with an angel investor must be noted with the Securities and Exchange Commission – the last things you want is to start out with legal action hanging over your head.

Sell an annuity

If you happen to have an annuity, perhaps due to being compensated for an injury, you could do what a lot of other entrepreneurs do and sell annuity payment so that it can be invested in your business. Obviously, if you do this there is no guarantee your business will take off, so you need to think very carefully about it and ensure your business idea is viable, but it can be a great way to get started.

Microloans

If you are planning to set up a non-profit company, you might want to take a look at microloans. They are available across a wide range of sectors from science to retail and they can help individuals who are unlikely to be approved for a traditional bank loan. Where does the money come from? Individuals who are looking to back a business idea they believe in pool their cash (usually via an official organization) and loan it out with (usually) very favorable terms.

Competitions

If you can believe it, there are actually competitions that offer cash or even business financing. These are usually run by larger organizations, and they do tend to have some pretty stringent requirements, but it’s definitely worth seeing what’s out there.

As you can see there have never been more options for funding your business, so don’t give up.

*     *     *