Four Surprising Ways to Help Fund Your New Small Business

As a small business owner, you know firsthand the thrill and satisfaction that accompanies seeing your ideas take flight. You’ve made the leap toward entrepreneurship and you’re ready to see your business get off the ground. Yet, to get there, you’ll need to invest a substantial amount of money in the tools and resources needed to get you and your team up and running. From software and hardware systems to personnel and technology, it takes money to make money.

The only problem? Your cash supplies are almost non-existent and you’re not sure where to turn. Today, let’s take a look at four surprising ways you can get quick access to the funds you need, so you can get back to business and start earning some yourself.

1. Crowdfunding

You may have heard of websites like Kickstarter, which allow people to invest in a company or business idea in exchange for a portion of ownership, company swag, name recognition or a slew of other incentives. While these platforms might be relatively new and you may not be too familiar with them, they’re worth checking into. Why? You can set the parameters so you’re not behind before you start, and the exposure you can gain is potentially substantial.

As more people learn about and help fund your business, you’ll gain brand recognition and can even attract the interest of some investors with deep pockets. The key to succeeding in this venture is making your pitch as clear and detailed as possible so readers know exactly what your business offers, what it stands for and what it will deliver.

2. Taking out a Loan

We know. The idea of incurring debt before your business earns a dollar can be disheartening at first. Yet, considering the number of lenders who specialize in small business loans, you’d be remiss to neglect this avenue, especially if you have a solid credit history and feel confident in your ability to pay back the loan on time.

Moreover, there are so many online and alternative lending institutions now available that you may not even need to go the traditional bank route. You might have hopped online and read about these options and wondered about their legitimacy. After all, there are plenty of quick cash loan myths swirling around. Still, they’ve proven time and again to be reliable and reputable sources of income for those who need it the most, so do your research before jumping in, but understand that this might be the most valuable and direct option for your business as it stands.

3. Partnering

One way to offset the costs of starting a new business is to find a partner willing to share the financial burden with you in exchange for sharing the profits as well. You can decide which kind of partnership to pursue and if the partner will become an employee of your business or simply an investor in it. For instance, you may bring on board a strategic partner who can help you find the employee resources you need to grow your company and fulfill business obligations. For instance, if you’re starting your own property management group, you may partner with a local maintenance or repair company as you foresee requiring their services in the future. Making this move can help alleviate the burden of funding every new move yourself while also introducing you to local connections and resources that can help grow your business on an even greater scale.

4. Angel investors

Angel investors are persons who fund your business but don’t actively work within it. Traditionally, these are affluent people who have a stake in a number of businesses that fall within their niche of interest. If you’ve ever watched an episode of “Shark Tank” you’ve seen this practice in action. Typically, angel investors field inquiries from a number of up-and-comers who will pitch and try to sell their business plans and goals in exchange for a sum of cash to help them get there financially. You can often find ones online, or if you’d like to stay local, check with your town’s Chamber of Commerce for more information. The leaders there will likely know who is interested in funding new business ideas in the area.

As you move forward within your small business, understand that earning a substantial income takes time, patience and plenty of hard work. Aligning yourself with the right resources and funding is a major step in the right direction and can help free you up to focus on generating clientele, perfecting your product, and marketing your services. As your bottom line grows, you may become less dependent on these initial sources of income, but the benefit they provide you at the onset isn’t to be overlooked.