As a startup and small business owner, you need funds but have very few places to look into. It’s a practical problem. Not everyone has the privilege of visiting Shark Tank. Not everyone has a lot of friends and connections in the industry. So, where can you get money for your startup?
You can ask your friends and family, ask for investment in a startup funding app, enter crowdfunding campaigns, get small business loans, connect with established investors on social media, or maybe, advertise in financial magazines.
We have elaborated on some of these methods to help you look in the right place to secure funding for your business.
Ask Your Friends and Family
The number one way to get money is to ask your friends and family for it. Most startups get their friends and family to invest in their business after they have used all personal resources.
It is the easiest way to secure funds as you won’t have to go through a formal funding process. Sometimes, you also get lower interest rates which is a big plus point in the initial days of your startup.
However, you must not dissolve the professional and personal boundaries just because it is family and friends. Make sure to ask properly, pitch your business in an organized way, and share the most important details to let them know about all the aspects of your business.
The internet is a boon for startup owners who want to make connections with established investors. You can simply connect with them on social media. Many people invest online in startups based on your preliminary pitch. If they like your business idea, they will reply to you and seek more details about your business.
You can also prepare a pitch to feature on a raise funding app for startups. There are many such platforms like Crazy Money that connect startup owners with potential investors and allow them to negotiate better terms.
If you don’t want to dilute your business but want money to grow it, you can get small business loans from your bank. You need to provide all your financial details to your bank so that they can examine whether you are eligible for a loan or not.
The biggest disadvantage of getting business loans is that you have to pay back the amount at high-interest rates.
According to popular opinion, the best way to secure funding for your business is to get investors online or through a startup investment app. You can negotiate directly with potential investors and present the exact state of your business.