Fund Your Startup
Fund Your Startup

Fund Your Startup

We have that idea that we know will launch a company beyond the stratosphere. However, there’s one problem. Money. You need capital to get your company off the ground. What can you do to find this capital? Here are several ideas to help launch your startup.

  1. Ask Family and Friends – When funding your startup, family and friends are a great place to start. This group of people can not only be a boon to your startup financially, they can offer advice and support when ended. Be mindful and selective with who you reach out to. Depending on the nature of your startup, it may be years before you see a profit or payout. This is an important note for your potential investors. Come ready with a plan.
  2. Side Hustle – Find a job in your spare time to pay for your passion project or startup idea. This could be your primary job. It could also be something you do on the side to make extra money for that idea. Take your time into consideration as well. In the startup business, your time is your money as much as money is. Some ideas for side hustles include consulting, building an affiliate marketing website, or tutoring. While gig economy side hustles might be appealing, be chary of such side hustles. They can take up too much of your time and distract you from the reason why you’re pursuing your side hustle.
  3. Small Business Loans – Your local bank or credit union can help with the financing of your startup. If you’re looking for a structured source of capital, small business loans can inject the capital you need. Be mindful of the terms of the loan when applying. It’s important to know how the interest rate and payment period of the loan can affect your business. After doing your homework, if this is a strong option for your startup, consider it. Kabbage is a good example of a small business loan provider.
  4. Crowdsourcing Investment Platforms – Crowdsourcing investment platforms such as Groundfloor and Crowdsteet are a good source of potential capital. These platforms allow you to showcase your startup to potential investors online. You may not get the advice or insight you would get from family, friends, or private investors. Nevertheless, this is a good way for you to find capital if you need it.
  5. Private Investors – Requiring perhaps the most homework when looking for ways to fund your startup, private investors are another potential source of support for your startup. Beyond the infusion of capital this group of investors can provide, they can also provide a network and/or advice on how to best attack your market. This may be more beneficial than the capital you receive. Vet your potential investors. It’s important to understand their history and patterns to see if they’re a fit for you.

Regardless of your method for funding, make sure you do your homework. It’s important to ensure the pros and cons are listed out for you before you make your decision. If you’re looking for help with the technology side of your business, consider Ehgo Solutions. We help startups launch and can help with everything from marketing to web hosting to app development. Fund your startup today with these tips.

Leave a Reply

Your email address will not be published. Required fields are marked *