Should You Be Looking for Startup Funding?

Starting a small business in Canada is no easy task, especially if you have to do it with little to no startup money. Knowing this, should you be looking for startup funding before you start the business or after you launch?

It is often recommended that before you start a small business, you have some capital. Hopefully you aren’t starting with zero cash, which means that you can at least pay for the main components needed for starting up a small business.

These components include the basic research of your business idea, the licensing and business registration, website and some web design work and the writing of your business plan.

But when do you start searching for real funding to help you move forward?

The funding search should happen as soon as possible, rather than later.

Why?

The process of obtaining funding is a long one, often funding (if approved) can be provided to you in a few weeks if you are lucky, but more often it is within 3 to 6 months of your application date – depending on the funding source, the amount of funding…etc

So the sooner you start your funding search, the better your chances are of obtaining the funding are.

When looking for funding, it is important to know what it is that you need funding for, and not just do it because you think you need it.

Some areas that funding can be useful for include: startup costs, hiring and training staff, purchasing land or equipment, conducting research and development, expansion costs as well as costs associated with marketing and advertising.

Depending on the source you apply to; private investors, banks, family/friends or the Canadian government grant/loan programs, your wait times, requirements and availability of funding may vary.

Before you start your funding search ensure that you have a business plan completed and know how much funding you need and what you need it for.

Consider using tools such as the Business Plan Builder Tool to complete your plan and apply for funding from both private investors and government agencies in our Funding Database.