3 Ways to Secure Funding for a New Business


We've all felt like a cog in the machine before. Working a nine to five job, Monday to Friday, where we work for peanuts, while our bosses profit from our hard work. Rather than continuing to pad someone else's bank account, it's time for you to take your ideas to market and become your own boss.

To some, the uncertainty created by quitting your job and opening your own business is enough to keep some from never reaching their fullest potential. However, for many, the primary issue of owning their own business is that they lack the funds to open the business. This article is designed to explore three avenues to secure the capital needed for operating your own business.

Using Your Media

A good chunk of startups get all of their initial capital from social media. After draining your savings account, don't be afraid to create a detailed business plan and present it to their friends, family, and online social networks. 

Instead of asking one person for the 25,000 dollars, you need to start up your business, consider asking 50 people to each contribute $500. You're more likely to get money this way.

It is worth mentioning that if people do give you money as a loan instead of a gift, this may create some tension. This is because it may take you a long time to pay back the loan someone gave you. One way to help keep someone's feelings from affecting day to day operations is by offering to pay them back with a sort of installment plan, as you begin to turn a profit.

Get a Bank Loan

If you need a large amount of start up capital consider a bank loan. There are many kinds of loans you can get to secure a startup business financing. Each offer different amounts of money, interest, and repayment plans.

There is one kind of loan that is worth highlighting, the Small Business Administration loans. This loan Is one of the easiest to get, but it requires you to put something up as collateral. If you default on the loan, then the bank can collect.

Selling Partial Ownership of Your Company

A third way to secure cash for your business is by selling a stake in your company. This practice is a relatively new one, and it has been made popular by shows like Shark Tank and Dragons Den. The advantage to this is that you get the money needed, but the person who provides the startup money with receive a portion of your net profits indefinitely.


After reading this article, we hope you've gotten a rough idea as to different ways to raise the funds required for your startup. Whether you use one of these methods or a combination of the three things mentioned, securing the money to get your business started is easier than what you thought it would be.

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