5 Tricks To Getting Your Business Funded

When it comes to the success of your startup business, funding play’s  a very important role.

Do you have enough funding? How much funding do you need? Where do you get funding?

Well here are a 5 tricks to getting your business funded:

Trick #1: Funding From Family and Friends

Even though in business it is often not recommended to “borrow” from family and friends due to issues that may come up, it still is one trick that you can use to get some funding for your new or existing small business.

Keep in mind that when borrowing from family and friends, the trick is to try and split it into smaller amounts so you aren’t borrowing the full amount from one or two people.

Lets say you need $5,000 to start up, not many friends or family members may have that to give you. But, 10 family members/friends may have $500 to give you. Which most of the time is really not even seen as an investment or shouldn’t require a contract to be written up.

Trick #2: Funding From Credit Cards/Saving Accounts/Banks

A second trick we have for you in order to get funding for your small business startup would be to use your personal savings, your credit cards or lines of credit. If you don’t have these, visiting a bank and setting one up would be the best option for you if you opt to go towards this route. Remember that a good credit score may be required.

If this is the route you take, consider credit cards that have the lowest interest rate as well as those with some sort of rewards, so you get something out if it as well.

Be sure to pay what you borrow on time to avoid interest rates and fees.

Trick #3: Funding From Business Partners 

If you have a business partner, or multiple partners you can repeat Trick #1 and Trick #2 per each partner.

If you don’t have any, you can maybe consider seeking a partner, or at least a potential investor who is willing to be a silent partner and lend the money. But remember, some sort of arrangement may be needed here such as equity share of the business.

Trick #4: Funding From The Government 

Government grants, loans, tax breaks and assistance is available. In fact there are hundreds of different programs for startup and existing business owners in Canada. In order to take advantage of this, the first step is to find a source such as the Funding Database offered by CanadaStartups.org, and search through programs and apply apply and apply.

Same rules may apply ( you may need good credit, try to break up how much you need over multiple sources..etc)

Trick #5: Funding By CrowdFunding

If applying for funding is not an option for you, consider the power of the web and social media through Crowd Funding.

Crowdfunding is the method of getting your business funded by a number of people by having them fund you with small amounts often $100 or less (sometimes more), in return for some sort of reward.

Many startups offer rewards such as free trials, being the first customer to try out the product/service and a mix of promotional materials.

If you are good on the web, setting a crowd funding campaign is simple. Be sure to try it out!

Those are 5 tricks to get your small business funded, and now it is up to you to go out there and get that money.