What Can I Use Funding For My Business?

One of the most daunting tasks that any entrepreneur faces at the beginning of their business, but even years down the line, is raising enough capital to stay afloat even during rough times. Being a part of the business community is no easy thing. There are some times of great success and also times of incredibly hard failure. However, the greatest entrepreneurs will be able to still lead and be positive during the times of stress and loss. A small business owner that brings everyone down when something goes wrong will definitely run their business into the ground, so it is integral to be a positive driving force behind the business.

Raising capital is no easy thing. For many small business owners starting out, they put a lot of their own money (whether through a previous job or their savings) into their business. This is understandable and a natural thing. But usually it simply won’t be enough and it is time to look for outside sources. The first thing people would turn to are friends and family, followed potentially by private investors looking for a percentage of a soon-to-be successful business. Funding is also available through the Government and various funding agencies all about helping entrepreneurs and their small Canadian businesses.

So why do you need funding? Is it integral to your business? The answer is 100% yes. Funding can be used for everything when it comes to your business. If you are creating and manufacturing a product to sell, it can go towards materials, business space, and paying people to run those machines. A great deal of funding, no matter what your business is, can definitely go towards the most important aspect of your business: marketing. A business without sales will not last long. The only way to spread the word, especially when starting out, is by producing great work but also getting the word out there creatively. Funding allows you the opportunity to put a large chunk of money into advertisements around your local area and take advantage of ads on the biggest social media platforms such as Facebook and Instagram.

Funding is meant to help you have enough capital especially during the harder times of your business. All entrepreneurs know that the first couple years are some of the hardest times for a small business. No one really knows who you are and you have to enter into your market with zero sales. It is up to you to sell people that even though you are new, you are better than the competition. It is during these years that sales may be low so you need enough capital to handle the loss. This is where funding comes into play. It will help your business stay alive even when sales are minimal in order to continue to spread the word for future sales. The Funding Database Tool we have will help you find funding sources in order to apply on time.