*disclaimer: This is for educational and entertainment purposes only and is in no way to be treated as financial advice.

Your amazing business idea may need funds to be successful. However, it’s not easy to finance a startup in a sea of competitors, let alone now, with Covid-19 changing our entire society.

Consider many sources for your startup funds:

1. Use your own finances.

Instead of getting a loan or borrowing from others, see if you can finance your startup with funds you save or gather.

Do you have savings that can be used to fund your new business?

Do you have items or services you can sell to raise money?

This may take awhile, but you might feel more comfortable delaying the launch of your company a bit while you earn the money to get it started.

2. Ask friends and family to help.

Do your family and friends think that the startup idea is a good investment that will bring high returns? If you have support from these sources, they might be interested in loaning you the startup funds or investing in your new business.

Your friends or family members can become lenders, partners, or investors in the startup.

They can contribute to the financial side, but they may also want to be involved in other areas. It’s important to negotiate an arrangement that you feel comfortable with.

3. Use crowdfunding.

There are multiple online crowdfunding platforms, such as Peerbackers, Kickstarter, Indiegogo, RocketHub, and others, that can help you raise money. These websites let you share your startup idea with the public. Then, the public can donate money in return for items, services, or a share in the company.

One key to success on a crowdfunding platform is to have a unique story. You can raise money for your startup and introduce your product or service at the same time. Keep in mind that these platforms are filled with competitors, and it’s not easy to get all the funding you need. A successful campaign on these platforms usually includes social media and marketing efforts.

4. Enter startup contests.

Big brands and investors sometimes have contests for startups. These contests put you in front of big names who are interested in investing.

They help you get recognition while you learn from other startups. You also have the chance to fine-tune your ideas to make them more appealing to investors.

5. Seek angel investors.

Angel investors want to help new companies and make a profit in the long term. They have large sources of money, so your startup may be able to get all of its funding in one area.

Angel investors tend to ask for a portion of your company or shares. They may ask to be partners or have control over startup decisions.

Because of their financial commitment, they have a vested interest in your success and want to ensure that your new business brings in high returns.

6. Consider financial institution loans.

Banks, credit unions, and other sources may offer you a business or personal loan to fund your idea. They may require collateral and ask detailed financial records and other information about the startup.

Small business loans are a popular choice among startups.

Before you get a loan, consider the fees and interest on the loan.

What if your business doesn’t bring in enough profit to repay the loan? How will you repay it? It’s important to have a Plan B.

7. Consider Applying for a SBA Loan for Businesses Affected by Covid-19.

While Covid-19 has caused many problems for small businesses around the world, there are some governmental initiatives designed to help small businesses thrive even in these difficult times. Visit the Small Business Association’s website for guides on loans and relief for small businesses affected by Covid-19.

Launching a startup is an exciting time! Follow a profitable business plan and keep your eye on the profits so your new business can repay the startup funds as soon as possible and move on to providing you the returns you deserve.

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