Do you know how to fund your business? Funding a business can be challenging especially if you don’t have enough savings or family money. That’s why we are going to discuss different ways to finance and start your business in a video. Watch it here and SUBSCRIBE to our channel.
Many business ideas did not see the break of day because of a lack of funding. Getting funding for a business is challenging. Yes, also challenging is knowing the right type of funding that suits your business need.
I am going to list and explain in detail eleven ways you can fund your business in a video. I am sure you will find one or two that will work for you.
Different Ways You Can Fund Your Business
This is also known as self-funding. It’s when an individual self funds their business. It is kick-starting your business with your savings and little operating income from the business.
2) Funding Through Family And Friends
If you don’t have savings to start your business or you have exhausted your savings, the next set of people to consider is family and friends. Consider family and friends when you are credible and trustworthy because you wouldn’t want to lose your relationship.
It is letting large number of individuals finance a new business venture.
4) Angel Investors
5) Microfinance Banks
Microfinance banks provides financial services for those who don’t have access to conventional banking services.
6) Bank Loans
This means of business funding has been in existence since time immemorial, and is the first go-to place for most businesses when seeking funding.
7) Venture Capitalists
A venture capitalist (VC) is a private equity investor who makes his funds available for investing in companies or startups with high growth potential in exchange for equity stake.
8) Strategic Partnerships
If you have a viable business idea, you may seek out a co-founder or partner who has funds to fund the business idea.
9) Startup Incubator/Accelerator
There are many hubs that run incubation and acceleration programs. They provide office spaces, mentorship, and support to startups at different levels of growth. Their primary goal is to prepare these businesses for investment by either angel investors or venture capitalists.
10) Government Grants
A government grant is a financial award given by the government to small business owners. The government focuses on sectors that have the potential to impact the economic stability of the country. Grants are not repaid but can be monitored.
11) Peer To Peer Lending (P2P Lending)
P2P lending is a means an individual can get a loan directly from other individuals. This type of financing cuts out financial institutions as middlemen. P2P lending is also known as social lending or crowd-lending.
As an entrepreneur, you can explore one of these funding options and grow your business. Let us know the ways you are funding your business in the comments.
Are you looking for the most viable businesses to start? We have step-by-step guides; a financial and strategic breakdown of the most lucrative businesses. Get it here.