3 Places to Look for Startup Finance
This post may contain affiliate links. Click here to read my full disclosure.
Starting out in business can sometimes be compared to drowning in information about everything from taxes to timetables. The idea behind starting your own business is usually because you want some freedom, some more time to yourself because you have an idea that you can see really making an impact on the world.
Making money doesn’t tend to be really high up on this list, but even the smallest of home run business needs some sort of finance to get them started. So here are a few different options you can explore.
Before you start applying for anything, make sure that you have all of your paperwork in order. Your business plan, detailing where your income streams will be, your audience… and so on. No doubt you have it all ready to go, but preparation is key.
1 – Crowdfunding
The last few years have seen tremendous growth in people-powered start-ups. Platforms like Kickstarter, Indiegogo, and CircleUp where the heavy hitters during 2017. CircleUp has helped 211 entrepreneurs raise $305 million since 2011, Indiegogo funded over 175,000 campaigns raising $1 billion since 2007, and then, of course, the most well-known of the three Kickstarter.
Since its conception in 2009 Kickstarter has helped raise over $2 billion – amazing. So, they are all worth checking out. Make sure that your product meets all their guidelines and be sure of what you can offer supporters.
2 – Angel Networks
These are rather brilliant, and although there has been a decline of angel investors in the last few years due to various ups and downs in the financial markets, they are still out there. They offer some really great perks too, as the name suggests, they can sit on your shoulder offering mentorship, reliable information and advice and provide access to their network and contacts. Work much more than the money alone. A couple of places to check out are Funded.com, Angel Capital Association, and the Angel Investment Network. There are a lot of angels out there, so you are bound to find one that suits you.
3 – Small Business Startup Finance Options
Check out if you might pass the credit checks for small business start-up loans. This is probably the quickest way to get a cash injection if you simply don’t want to wait to leave your job but you know you have to keep a roof over your head and food on the table.
With any type of finance options, you will have some things you need to adhere to. Such as providing Angels with information and when you meet the targets of your agreement, you’ll likely either give them equity or cash. For the crowdfunding, it will be sneak peeks, early access, and products. Make sure you that you never take a) more than you need or b) more than you can afford to pay back. Starting a business is a fantastic ride, but you need to approach it with as much knowledge as you can when it comes to your finance options and what you need it for.
Get My Tips Delivered Weekly!
Receive my best tips for saving and making money via email! You'll get behind-the-scenes footage of my budgeting techniques and debt payoff methods.