5 Ways to Fund Your Startup You Might Not Have Considered
Looking to get funded? We’ve teamed up with Bean Ninjas to share a list of nine ways to fund your startup. If you’ve been asking yourself where can you get startup funding, then you’ll find this post helpful.
A lack of funds is usually the one thing that keeps entrepreneurs and startup founders from turning their idea into a sustainable business (or reaching that dream exit).
Before you start stressing about the money, think rationally about your options. We’ve shared 5 ways to fund your startup below:
1. Incubator or accelerator (and equity financing)
Partnering up with established incubators or accelerators can make the business launch faster, as long as your partners are interested in your field of work. You can find these people in various workspaces or development centers.
A word of warning: be careful about the amount of equity you give to a partner or investor. It would be wise of you to investigate the pros and cons of equity financing before you sign over ownership of your business.
2. Friends and family
If you’re certain that you can pay back loans, your friends and family may be able to support you in investing and helping your business.
3. Small business loans and grants
There’re plenty of banks and non-banks that target small businesses, but double check who you’re borrowing from.
For this option, you need to stand out in order to get a loan and you need to prove that your business will meet the lender’s strict requirements (such as having 1-2 years of financials to qualify).
As an example of a bank business loan, NAB offers microenterprise loans of $5K – $100k for 3yrs at 12.95% unsecured (at the time of writing). T&C’s apply including the need to sign up with a BEC or other partner organisation for a year.
You can also apply for small business grants if you fit into the categories they work with. But be sure to check if you’re getting a loan or a grant.
If social media is your jam, you can try out crowdfunding. There’s just one big catch… you’ll be going up against many other companies seeking funding on crowdfunding platforms. So you’ll need really need to know how to craft a powerful brand identity and tell a compelling story.
Who hasn’t heard of the great bootstrapped startups like MailChimp, Basecamp or Braintree?
Starting a new business is easiest when you can use your own money, or credit, etc. to begin with.
This could be tricky too because if your business doesn’t take off the way you planned, you can end up in huge debt.
If however, you’re able to gain ongoing funding through customers paying you every month then you’ll be in a great position.
We hope you found this post helpful and if you need more support with the funding options above we have additional resources on these topics in Fishburners Founders Hub library of resources.
We share the latest grants and funding opportunities via our Slack channel and also have resources on crowdfunding and raising capital for when your business gets to that stage.
If you’re interested in getting started with a membership to Fishburners Founder Hub you can learn more and get started here: https://fishburners.org/join-us/fishburners-founders-hub/