It’s time to be your own boss, and nothing is going to stop you – that is, until you realized how much it will cost you to start your new business venture. Don’t stress. There are plenty of ways you can get the money you need so you can walk into your evil boss’ office and say those words you’ve dreamt about uttering for years, “I quit.” Avoid including expletives in that simple sentence but walk out the door with your head held high. Here are 10 ways you can secure the business financing you need, including a way to get your hands on agricultural funding for your organic farm.
If you’re religious, this holds a special connotation, but angel investors work with everyone, even atheists and agnostics. An angel investor is someone who has a heck of a lot more money than you do but loves your business idea. He or she will give you the funding you need to open your venture’s doors and ask for a return percentage of the profits, a percentage of ownership and/or managerial responsibilities, or both. Don’t discount this idea because of this. Angel investors are successful and often have excellent advice to share with you to ensure your venture’s success.
If you just had a vision of the latest Pirates of the Caribbean movie, think again. Bootstrapping means taking any liquid assets you own – assets you can convert immediately into cash – and using the money to finance your business venture. Perhaps you have savings and retirement accounts you can cash out, or maybe you can borrow against your home equity loan. Other options are to sell stocks, cash out bonds, or take money from a combination of assets to spread the personal loss evenly.
If you’ve donated to a personal GoFundMe campaign, you know what crowdfunding is. What you might not have known is that there are professional crowdfunding websites, as well, and these sites allow you to post your startup’s financial goals. Explain what your business does and include a business plan to which people can refer. Hopefully, you get enough money in your crowdfund to finance your business startup and some extra for unanticipated expenses.
Huh? How does debt tie into financing? Easy, it’s a loan. Debt financing means you get the money you need by securing a business loan or opening up a business line of credit. Depending on your personal financial situation, you may be able to open unsecured accounts that allow you the money you need without collateral. In most cases, however, you will be required to provide collateral for a business loan, so make sure you have something to offer the financial institution.
5. Loved Ones
Borrowing money from your friends and family is a tried-and-true way to finance your business startup. If you’re going into a line of work that a family member or friend is already successful in, reach out to him or her for money and advice. Much like an angel investor, the person may want to invest directly in your business and offer up some crucial advice to optimize your chances for success. Your parents love you and they’ll likely give you the cash you need for your startup.
6. Farm Funding
For those who have always dreamt of getting back to America’s roots, farm funding is the perfect option for your new agricultural business. Certain companies, such as Western AgCredit, offer farm loans. Look for a business that is a member of the Farm Credit System. These lenders want to boost America’s agriculture business, which in turn boosts America’s economy. Although there is no guarantee, you might find a lender willing to give you an agriculture or farm loan.
7. Business Grants
If you’re looking for free money that you don’t have to pay back, see if you’re eligible for a business startup grant. Many organizations offer grants, including the federal government and the Small Business Administration. Those who qualify to compete for such funding include the disabled, minorities, women and specialized business owners. The only downside to a grant is you will have to spend the money per the grantor’s specifications, so make certain you understand the terms.
8. Incubation Lenders
You know that retail website Amazon? How about that technology company Google. These companies became the behemoths they are today by taking advantage of business incubator financing. Incubators not only fund business startups, they also give you a game plan that gets you on the road to success. An incubator program focuses on a specific industry, such as technology, and those behind the funds sit down with you to discuss your vision and the best ways to achieve it.
9. Micro Lending
The SBA doesn’t just offer grant opportunities. It also has a handful of microloan programs that cover many of the expenses required to start a business. These programs lend startups money for equipment, property, and operating expenses among other things, but the SBA itself isn’t giving you the cash. Rather, independent financers apply with the SBA to offer customers the loans, and the terms work well for those just starting out, such as smaller loan amounts and extended payment plans.
10. Venture Capital Financing
If you’ve already begun your business and it’s well established, you can look to venture capitalists to give you the money you need for your next growth phase. You need to have a solid footing in your industry; otherwise, the venture capitalist won’t be interested in giving you money. Why? Because generally, VC lenders drop a ton of money into a business’ growth, as much as $10 million, so keep this in your pocket when you’re ready to give Amazon or Google a run for their money.
These are 10 ways you can finance our business startup or business growth. Whether you want to become the next Google yourself or you are ready to get in touch with the earth for your living, there are plenty of ways you can get your hands on the cash you need for your venture. Don’t let anything get in our way of your dream, especially money. Use one, a few, or all of these methods to start and grow your dream. What have you got to lose? You can do this!