Whether you’re starting a business from scratch, or your fledgling enterprise is ready to move on to the next stage of your business plan, there may come a time when you’re looking to increase your capital and raise funds to drive your success forward.
Understanding the complexities of business funding and examining the various options available to you and your small business, can help you make an informed decision about your funding and make the right choice that suits your business plan and your progress so far. You can find out more about small business grants here. In this post, we’ll explore some ideas for small business funding in 2021 and help you make an informed choice about which direction to take your enterprise next.
Crowdfunding
Raising investment for your business via crowdfunding, means using multiple contributions raised by a large number of people to finance your business idea. If your product or services are eye-catching and potentially popular, then positioning your business on a crowdfunding site could be the key you need to unlock its full potential. If you’re still in a start-up position, then you can request crowdfunding and in return, offer merchandise and other special incentives to encourage people to invest. If your business is a little further on and you’re hoping to expand with more funding, then offering shares within your business in return for capital is another crowdfunding option that may benefit you.
Consider An Angel Investor
An angel investor is someone who is prepared to invest their money and resources into an entrepreneur who is in the early stages of a business start-up. As this is usually when traditional investors such as banks won’t be prepared to take the risk, angel investors are happy to provide entrepreneurs with the capital they need to get started, often in exchange for ownership equity or by buying back their shares over a period of time. It’s an interesting concept, and you can find approved and appropriate angel investors online, however it’s important that entrepreneurs conduct plenty of research into this funding option.
Family And Friends
It’s a traditional way of funding any business idea and if your friends and family believe in your business plan as much as you do, then you’re going to enjoy sharing your business success with them backing you, both emotionally and financially. They may not be able to fund your business venture entirely, however a small investment to get you off the ground is enough to get things going without any scary repayments or interest payments hanging over you. Of course, family and business can be a tricky mix, so ensure you approach them with a robust business plan and don’t be offended if they say no!
Bank Loans
Traditional bank loans are still the most common way of funding business ideas. However, before you sign on that dotted line, you must conduct plenty of research into your loan options, the terms of your agreement and your repayment obligations. Seek as much advice as possible before securing a bank loan.
Final Thoughts
Funding your business is incredibly feasible when you have multiple funding options available. Consider the options above to get your business moving.
Founder Dinis Guarda
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