If your business has a major customer you might be in luck. Sometimes customers are willing to fund businesses just to be able to benefit from the company’s services or products.
It’s the most common funding option for small or medium sized businesses. If your business has a great track record and excellent credit you will most likely receive a bank loan without any problem.
Forming a partnership with a more established business can be a game-changer for your company. You will dramatically reduce your costs.
Usually, angel investors are wealthy individuals who are interested in investing in small businesses. Most of the time, they help business with capital in the first stages of the company’s development.
Incubators or accelerators usually support new businesses in various stages of their development. Most of the time business incubators focus on the high-tech sector (biotechnology, information technology, multimedia, or industrial technology). Companies funded through this option have had a higher success rate in the first 5 years of operations.
Many entrepreneurs forget about this promising option for funding their startups.
This type of funding is not suited for all entrepreneurs. Venture capitalists only fund technology-driven businesses and companies with high-growth potential in sectors such as information technology, communications, and biotechnology.
A bank line of credit or a Small Business Administration loan is the best choice if you only need temporary or small infusion of cash.
If you’re lucky enough to have family members that are willing to fund your business it’s time to celebrate. It’s definitely one of the best options for your future business.
When starting a business, using the money you saved is always the best option. It is also called bootstrapping.