The end of 2020 saw a huge surge in American entrepreneurs setting out on their own. So, if you’re planning on starting a business, you’re not alone—in fact, you’re in good company.
4 Top Recommendations for Financing a Startup
But starting a business isn’t always easy. Even if you have a great idea and a team at the ready, you need money to get off of the ground.
You’re right to think that financing a startup isn’t easy, but it’s not impossible, either. Here are four tips to get the cash and capital you need to get your new business off of the ground.
1. Find a Grant
One way to find small business financing is through a federal or state grant. There are several government-funded programs out there meant to stoke the economy through small-business creation and support.
Do your research and see if there’s anything in your state—or on the federal level—that can help get your business off of the ground.
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Of course, there are always private grants available, too, but those aren’t as consistently offered as government ones.
Again, it’ll take a bit of web searching on your part, but, if you find an investment-sized grant, then you can get your startup off the ground.
2. Apply For an SBA Loan
Next up, you might consider applying for a Small Business Administration loan. These top SBA lenders provide government-backed loans to get small businesses off of the ground.
They get government protection for up to 85 percent of their investment for helping you get your startup running—and, of course, you benefit from having the funds you need to begin a new business.
3. Try Crowdfunding
Perhaps your new business idea revolves around an idea you have for an ingenious product. You know the public would love it, too—they just need to see it to believe in it.
If you have a prototype and videos or content that show how it works, then you could gather startup funds from a crowdfunding platform. People can pre-buy your products to give you the cash you need to get production started.
Of course, crowdfunding isn’t just for inventors. No matter what, you’ll need a solid sales pitch that inspires people to donate and help you get started.
4. Find a Funding Contest
Now, this funding option is a bit tougher to come by than some of the others. However, if you believe in miracles, then entering a funding contest is worth your time.
Companies such as Amazon and educational institutions such as MIT have funding contests, sometimes providing upwards of $100,000 to the winner. You’ll have lots of competition, of course, but you believe in your idea enough to start a new business around it.
So, why not enter the contest and pitch to some of the best entrepreneurial minds out there?
Financing a Startup Starts With You
These four ideas for financing a startup represent more unique ways to fund your idea. There are other ways to pay for a new business, of course.
You could dip into your savings, or perhaps take out a personal loan.
No matter what you do, though, the business starts with you. It’s your idea, and you should do whatever it takes to make it happen. These four pathways can get you there.
Once you do, don’t forget to check back with us for more startup business ideas and advice.
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