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4 Ways Fundraising Can Help Grow Your Small Business

Small and medium businesses make up a huge part of any country’s total revenue. For one, these enterprises are designed to directly interact with the consumer at the lowest level of the supply chain.

4 Ways Fundraising Can Help Grow Your Small Business

As such, it makes sense why such ventures generate a lot of profits at the end of the day regardless of their sizes. However, they also need sustaining financial support to fulfill their consumers’ demands.

There’s no denying the fact that all SMEs (Small and Medium-sized Enterprises) and even big companies can’t survive without enough financial support.

As such, most of them opt for loans at some point in their development journey. However, loans are usually not the best option, especially if the business is already in a dire situation.

In such cases, fundraising becomes the best way out, especially if you’re running a startup business.

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There are many organizations today, like Givebutter, that are committed to ensuring an easy and attainable fundraising process. So, how can raising funds help your small business? Let’s have a look.

1. Expansion

Every successful company started as an idea and grew through various stages before becoming a world-beater. As an entrepreneur, there’ll always come a time when you’ll need to expand your small business and move it to the next stage.

Well, this process can be expensive since you’ll need more employees, new equipment, and definitely a larger space.

As stated earlier, most of these small businesses generate a lot of profits, but that might not be enough to make such significant adjustments. Therefore, startup fundraising might be the best possible way out.

There are many fundraising organizations coming up every year with a common objective of empowering SMEs and ensuring that these businesses grow to their potential.

The funds acquired through such processes may also come in handy in implementing various marketing strategies. For instance, you can employ online influencers or pay the mainstream media to advertise your products.

At the end of the day, you’ll be receiving an increased number of visitors per day. One thing about businesses is that the more customers you get, the more you’ll need to expand.

2. Purchasing Assets

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Technology has grown very rapidly in recent years. Today, every business is looking to overcome the competition by acquiring the most advanced equipment.

This way, they can meet consumer demands and adjust quickly to any new needs. Therefore, as a business owner, you need to update your operations in order to remain relevant in the market.

Depending on your industry of specialization, new equipment can be quite costly. As such, acquiring one for your business might mean that you forego some of the expenses. But if you don’t want to compromise your operations, then fundraising is the way to go.

With new and more advanced equipment at your disposal, you can expect to have a more productive team, which is the basis of any business growth!

3. Speeds Up Operations

Having a productive team by providing them with the necessary equipment is one thing, but taking care of these workers on a day-to-day basis is something that’s ignored by many businesses.

For instance, providing free meals, like tea and lunch, can help improve the output of your workers even further. Of course, incorporating these projects into your budget may need an extra helping hand, which is where fundraising comes into play.

It doesn’t matter how much your business has grown; you’ll also need enough working capital at your disposal.

Just like the free meals and other employee-empowerment programs, this helps speed up the daily tasks within the organization. For instance, you might be having a new project, say a construction process, running.

Obviously, you’ll need to finance all the operations–from buying raw materials to paying independent contractors.

This can be quite expensive and will definitely strain your company’s financial muscle, especially if it’s still a startup. Opting for fundraising will ensure that all the tasks are done within the desired time frame and that you get your new facilities operational on time.

Other expenditures that can be covered include employee salaries, warehouse maintenance, external storage places, production, and transportation of various goods.

4. Debt Restructuring

Many businesses take up loans either as their initial capital or to further improve their services. However, no company is immune to economic changes.

Therefore, when things start going south, almost every business starts counting losses unless they change their tact. You could be in a situation where you can no longer service your current loans; at least, not with the ease that you initially enjoyed.

So, what do you do in such a case?

The most reasonable option is to restructure your debts. What this means is that you go back to the drawing board with your creditors and come up with new terms.

Depending on your situation, it’ll either lead to an extension of the payment period or any other agreement that favors the issues you’re currently facing.

Of course, you can also decide to pay a certain amount in a lump sum and then reduce the monthly payments. This will help reduce the burden and give you enough space to grow your business.

Don’t know where to get the money to facilitate such a process? Worry not! All you need is to polish your fundraising strategy and find ways to attract donors who believe in your course.


Fundraising has been around for many years but not all small businesses have an idea of the number of benefits it can bring.

For one, it helps such businesses expand their products and services and reach more consumers. It also aids most SMEs in their bid to purchase new equipment and meet the ever-changing consumer demands.

Speeding up operations is another way to grow one’s business, and fundraising has proven quite effective in that regard. Finally, it can help you reconstruct your loan repayment formula and create a conducive space for growth and development.

Therefore, if you’ve never considered it yet, this would be the ideal time to do so, especially given the current economic situation across the world.


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Get the latest news, resources and tips to help you and your small business succeed.