You may have a million-dollar idea for the perfect product or service, but getting your company off the ground may be more challenging than you think. Creating a product is expensive and often eats up any accumulated capital that entrepreneurs have scraped together. After the initial development period, most small businesses need to find funding to expand and launch their companies to the public.
It’s not easy for small businesses and entrepreneurs to find funding through traditional sources. Banks and venture capital companies are looking to back companies with a proven track record and profitable margins. If you are just starting, finding funding to help you expand can be a challenge.
Most small businesses have humble beginnings and struggle to gather enough independent funding to get their startups off the ground. Dealing with private lenders like montanacapital.com or investigating a crowdfunding platform could help you get the startup funding that you need. Let’s take a look at a few unique ways to find funding for your startup.
If you own a vehicle, boat, or RV, you may have a hidden source of startup funding sitting right in your driveway. A car that is an asset has a value that can be cashed in through a title loan. Title loans are a secured type of borrowing that can be pretty easy to obtain. If you own your vehicle outright, you can consult with a title loan officer to determine how much it is worth. You can then borrow against the value of your vehicle, boat, or RV. The great thing about title loans is that you can borrow money without handing over the actual title. You only give up your vehicle title if you fail to meet your repayment obligations.
Angel investors can be a lifesaver for small businesses and entrepreneurs. These individual investors are looking to fund startup businesses by providing seed money. You don’t need to have an operating business to gain the interest of an angel investor. In some cases, your angel investor may request a percentage stake in your company in exchange for funding your startup. Angel investors can be found through an online search at sites like AngelList.com. One of the benefits of working with an angel investor is that they also bring experience and expertise to your venture along with their seed funding.
Finding money for your startup launch by canvassing private lenders can be a challenge. Private lenders can mean everyone from non-traditional banks to asking your parents for a loan. If you find funding with a private lender, it’s a good idea to hire a legal consultant to ensure that your contract is legal and that you are adequately protected.
Applying for a government grant to help start your business is only an option for non-profit companies. For-profit companies in the U.S. need to apply for business loans for funding. Although there are several government-backed small business incentives available, only established businesses qualify for funding.
Crowdfunding platforms like Kickstarter have helped thousands of small businesses and startups get the funding they need for their launches. The concept of campaigning to strangers to donate to your business cause is a unique and no-strings-attached approach to business financing. The key to success on a crowdfunding site is to make your presentation clear, exciting, and engaging. Keep your initial goal amount to a minimum at first, and with each goal reached, you can increase your amounts.
Starting a business can be both exciting and overwhelming. If you are looking for funding for your startup, think about these unique opportunities that may help you take your company into the future.