Last Updated on November 16, 2019 by Jessica Adams
If you have a great business idea, then you might have considered a few different ways you could bring it to life. While you may have a few viable ways to help create your business new business idea, there might still be one very restricting factor in the picture: your startup funding. It is impossible to launch a successful new company without enough capital in the bank.
This money is necessary to buy all the resources and equipment that you will need to start your business. You’ll also need to hire a team of employees if necessary, with that same funding.But just having enough to prepare for the launch isn’t enough – you also need enough money to make sure that you continue your operations well into the future.
So, when you are planning the launch of a new business, it’s necessary to carefully consider all of your funding options and to figure out the best one for you and your company. To help you start off your research, here are the most common forms of startup funding.
How to Find Startup Funding
For Your New Business
Using Personal Assets And Savings
Quite a few entrepreneurs try to save up as much as possible before they start organizing the launch of a new company. This is so that they can use their own savings for the funding and, therefore, don’t need to rely on anyone else and don’t have to worry about owing other significant sums of cash.
If 
you do decide to go down this route, it’s a good idea to find an accountant who can help with prepping your taxes as some of your personal money will become part of your business finances.
This can be difficult to explain to the taxman, but an accountant can help you get everything in order. It’s also necessary to continue saving and relying on your assets once your company is operating so that the funding never dries up.
Crowdfunding
Crowdfunding is a fairly new method of raising funds for a business, and it has really taken off in the past five years or so. To do this, you just need to sign up with a website like Kickstarter and set up a profile and project page.
You then need to list some products and perks that people can pre-order. If the project gets fully funded by customers pre-ordering, then you will be given the full lump sum.
However, the main risk of this type of finance is if your project doesn’t get fully funded. In that case, you won’t receive a single penny and everyone who has pre-ordered will be refunded. So, if you do decide to use this method, you need to ready for a lot of marketing and PR to get the word out about your crowdfunding project!
Consulting & Monetizing
If you’re an expert in your field, you might want to consider becoming a consultant to other entrepreneurs or small businesses. Many entrepreneurs choose this option if they have a lot of experience and lots of skills and knowledge to share with others.
To do so, they simply set up a consulting business alongside their startup. All of the profits that they make from consulting go straight into the startup to ensure there is plenty of capital flowing through it. This option can be quite a big risk, though, as the startup is completely dependent on the consulting company.
This is why creating a website for your consulting business, that you can drive traffic to, through a blog, is another great idea. You can monetizeyour website with affiliate links and/or digital downloads for sale.
Then it’s all about creating valuable content and driving traffic back to your website so that people can click on your links and buy your products. If you’re thinking to yourself, “that sounds easy enough!”, remember it’s because I explained it the simplest of ways.
A lot of work must go into earning a passive income through your business’s blog or website. It’s not going to just happen overnight! Personally, I think the idea of starting a consulting “side hustle”, along with monetizing the website for that business correctly, the best way to get your startup funding. Just remember to have patience!
Using Resources From Friends And Family
Some entrepreneurs like to use any resource made available from friends and family to fund their new business. Some friends and relatives might expect a return on their investment, and this will be their main reason for giving you the cash in the first place.
However, that won’t always be the case, and they might simply give you the funding you need just to see you do well. Of course, not all family members and friends might have the necessary amount of capital needed. Even if they did, they might not be too happy about investing such a large amount in a startup business.
Accelerator Programs
If you are completely new to the world of business and have never run your own company before, then you might like the sound of accelerator programs. These normally last about 12 weeks and include mentoring and light funding.
You normally undertake the program with other fellow entrepreneurs. And the course ends with everyone giving short presentations about their own company to a group of potential investors.
This is a great option if there is a lot of potential for your company to expand in the future. Investors will be a lot more interested to offer you funding if they think they will get a big return on their investment.
Venture Capital
If your business is a great investment opportunity and offers some clear returns, then it could be worth looking into venture capital. This is when professional investors inject huge sums of capital into companies with the hope of making lots of money.
Venture capital investors know what they are doing. And they’ll usually bring more than just money to the table. So, if you are expecting massive growth from your startup, this might be the way to go.
Angel Investors
If you like the idea of getting help from a wealthy investor, then you might also want to consider angel investors. These are often extremely rich people who team up together in “angel networks” to fund budding entrepreneurs and businesses.
Most of them host social events which usually feature a section of pitches from entrepreneurs who are hoping for a healthy injection of cash into their startups. And most of the time, it’s the businesses in the very early stages that get funding this way. So make sure not to leave finding your angel until the last minute.
Hopefully, one of the investment options above helps you find plenty of cash to get your business up and running as soon as possible!
Jessica Rose Adams
