So you’ve made the big leap to start your own business.
Congratulations! Now begins the ever-constant journey of finding money to fund your dreams.
Here at Capital Dude, we work with all kinds of business owners to ensure they have the money required to keep things running. And since we have years of experience in the field, we have a few suggestions on how to finance a startup business.
There are several ways to get the money you need, but what’s the best way to get funds for a startup? And can you get startup funding if you have bad credit?
Like many things, there is no one right way to get funding for your startup. However, some methods are better than others, and each has its pros and cons. Here are our recommendations for how to finance your startup business, no matter your credit history or financial status.
Personal savings
If your startup has been a long time coming, you likely saved some money to start your business off on the right foot. While some people caution against investing your own funds, this is often necessary. It also shows potential investors that you’re serious about your work and believes in your business. If you are just starting to set aside money for a new business, it’s a good idea to work with a financial consultant so they can help you create a realistic strategy for saving.
Personal loans
Many people rely on friends, family and coworkers to make their startup dreams a reality. And if you have a great business or idea, your loved ones will likely want to support your new venture. Personal loans are a great way to get money quickly, but they do come with some strings attached. Remember that asking for money from friends and family can cause tension, especially if your new business doesn’t do well or you can’t repay the loan. If possible, try to avoid this strategy, so you don’t have to bring personal ties into the workplace.
Early investors or angel investors
If you’re in the process of getting your startup going, you may have heard of the term angel investor. An angel investor is someone who has a good amount of money and wants to invest in new businesses. They often invest money into startups with the understanding that they have some say in business development and executive decisions. And while it may be a challenge to find an angel investor, they are worth their weight in gold.
Government programs and grants
Depending on the industry you’re in, many government programs and non-profit organizations offer funding or grants for new businesses. If your startup involves the betterment of the public or helping underserved communities, you likely can apply for a grant. Keep in mind that the competition for these programs is stiff, and you will need to be on top of your grant writing skills to see any success.
New business loans
Traditional loans are a tried-and-true method of getting the funding you need for your startup. Some people worry that they will not qualify for a new business loan if they have no credit or bad credit. However, depending on where you apply, you could find the funds you need in no time. At Capital Dude, we pride ourselves on supporting all kinds of new business owners, no matter their credit history. Find a financial institution that’s willing to look at your business and portfolio in a holistic way to ensure you get the best rates and the highest loan amount.
Starting a new business can be a challenge, and the first few years often hold a lot of strain. But with the right partnerships and funding, you can watch your startup grow and flourish.
Curious about how to fund your startup with alternative methods? Contact Capital Dude today! We’d be happy to review your options and help you set up a realistic plan to fund your startup.
