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If You’re Starting A Business, You Better Know How To Fund It


I have been thinking more and more about starting another business. Yes, I consider my blogs a business and now I’m considering starting another one. This one however will take a bit more capital to start and will require a move that I really want to make anyway. Because I am ready to start my own business I have been checking out how to fund my business and I found a few ways to do it.

A good business needs more than an idea, passion, and plenty of elbow grease. It also needs funding. Even the most digitally agile, run-from-home business needs to cover the costs of any software used, marketing, and building a website. As such, it’s time to consider some of the different funding options out there and who they may or may not work for.

The bootstrap

When we talk about bootstrapping a business, we’re effectively talking about ways to save up to fund your own business. It’s often associated with being as frugal as possible with startup costs with a view for re-investing or acquiring funding down the line. However, as Startupnation shows, there are many different ways to bootstrap your business. Besides putting aside a portion of your budget, some people will make use of their 401(k), pledge their future earnings, and so on. If you plan on bootstrapping your business, ensure that you set out what your startup costs actually are so you have a target to aim for.

The credit card

The costs of opening a business might seem like a lot to put on your credit. Indeed, this approach does directly cause some risk with your own personal financial health, so it’s essential that you know how to handle debt the right way. There average person’s credit limit isn’t extremely high, so this method is best suited for those who have startup costs low enough to cover with a single card. For instance, home-based businesses that don’t have to pay the costs of renting or buying a new property.

The business loan

The traditional method of funding a business, but one that has been getting more and more flexible over time. Bank loans are notoriously slow, and it can also be hard to find a good fit for a smaller business. As such, business loans are usually better for those who have higher funding needs than home-based startups. However, as BSF shows, there are lenders for all kinds of specific industries and businesses. Smaller, more niche lenders than banks are growing online, making it easier to find the exact kind of funding that you need for your business.

The community approach

You’ve likely heard of some of the success stories on Kickstarter, Patreon, and other crowdfunding channels. There’s no denying that tapping into community funding has its benefits. Not only is there no need to pay back what you’re funded, but it also creates an engaged audience that will be waiting for your business to launch. However, it takes a lot of passion to get people that invested in a future product. A strong sense of audience appeal, and frequent community engagement is essential for making a success out of a Kickstarter campaign. Meanwhile, Patreon accounts most commonly succeed backed by the creativity and originality of those they fund.

Thankfully, flexible lending and funding platforms have made it a lot easier to find the perfect way to find the money for your own business idea. Hopefully, the points above have given you an idea of where you should start looking, too.





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