Some entrepreneurs are left to chase other dreams because they don’t have the required capital. Others even embark on their journeys without the right amount of capital, only to watch their business collapse after a few years of operation.
With myriad funding opportunities available on the internet, finding the right one for your business is more difficult than ever. Should you delve into CFD trading, for example, in order to raise enough cash to self-fund and bootstrap? Perhaps you need to give up part of your business in order to obtain investments from others?
Either way, you’ll be doing your business a lot of good if you secure the right amount of funding before kickstarting your idea. Read on for some creative ideas on how to fund your business.
Apply for free grants
Various institutions provide entrepreneurs with grants to help them finance business ideas. From government institutions to private corporations, there are lots of opportunities.
However, grants are highly competitive. You need to make sure your business is appropriate and your idea sound before applying for a grant to improve your chances of receiving it. The first step is to determine the specific grant is right for your business. Then ensure you have thoroughly researched the funding organisation itself. Lastly, you’ll want to create a captivating and compelling narrative for your reader so they give the grant to you and not someone else.
Crowdfund your business
Provided you are planning to sell a unique product, crowdfunding may be the ideal option for you. There are various online crowdfunding platforms today, such as Kickstarter and Indiegogo. These platforms can help you take customer pre-orders and receive funding for manufacturing inventory. However, it’s worth noting that crowdfunding requires you to have a plan to sell a unique product that is valuable in a certain region – i.e. you have a target audience.
Self-funding is, without a doubt, the best way to fund your business. If you self-fund your small business, you won’t need to compete with anyone for funds. You won’t have to convince anyone to get funds. And above all, you won’t need to give up a percentage of your business to anyone else.
There are various methods you can use to self-fund a business. From dipping into your savings account or retirement funds to delving into online trading, the options are there for you to choose from. Online trading could be a great place to start, as you will only need a few dollars to start trading online.
If you take this route, however, remember that patience is vital. You won’t be raising the capital you need overnight. Be aware that you will need to work with experts such as CFD trading brokers if you want to start your online trading.
Apply to accelerators
Accelerators are highly competitive programs established to help business minds succeed. Accelerators generally provide your business with funding (typically in the range of $20,000- $100,000), guidance and connections.
Unlike grants, accelerators don’t just provide you with funding. They also offer guidance and connect you with established brands and individuals to help you succeed. However, accelerators do take something back in return from you. In exchange for lending your business a helping hand, accelerators usually take a percentage of equity in your business (typically 5%-10%). If this is something you are happy with, an accelerator is ideal for you. Bear in mind that accelerators are quite competitive, so you’ll need to prepare a strong application to be considered.
Angel investors are wealthy individuals looking to put a seed into a venture. Pitching your business idea to an angel investor is a great way to establish your business. On the flip side, angel investors will take an equity position in your business, as well as some control of your business.
If you have a small business idea you want to finance, you can apply to microfinance banks to get the funding you need. Otherwise, if you have a larger business, you may need to approach a larger bank to obtain a business financing.
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