There are lots of entrepreneurs and developers out there with a brilliant app or business idea. While not all of these ideas will go on to become the next Facebook, Instagram, or Whatsapp, some will go on to achieve a significant level of success. However, it is difficult for a business to get off the ground without funding. Common startup expenses include salaries, advertising, research, equipment, supplies, etc. Listed below are five sources of funding to help new entrepreneurs and developers get the funding they need to make their business a success!
Crowdfunding is one of the newer forms of fund-raising. It is also one of the most effective. it involves requesting donations from people to help get a business or product off the ground. Sites such as Kickstarter, GoFundMe, Indiegogo, and Patreon are just some of the many crowdfunding sites new business entrepreneurs are using to fund production for products, fund prototypes of inventions, and begin earning capital so that they may begin their business ventures. This is a unique form of fund-raising, but one that has proven quite useful for young and tireless entrepreneurs. Patreon is an excellent source for new artists, writers, and others who have more creative pursuits in mind.
2. Small Business Loans From a Bank
In contrast to Crowdfunding, Bank Loans is one of the oldest and more traditional ways to fund a business. Many smaller banks—or even larger branches of banks in smaller areas—are always willing to help entrepreneurs realize their dreams of starting a business. It helps if the entrepreneur has good credit, or can find a co-signer if they have no credit, to begin with. This option is best discussed individually with a loan manager.
3: Find a start-up incubator
Much like online crowdsourcing web sites, start-up incubators are an entrepreneurial innovation. They are also referred to as business accelerators. These facilities are often associated with colleges or universities, and they provide new start-ups with managerial training, office space, and other services they may need while they are beginning their new business venture. Some of the most successful start-up incubators are Y Combinator, Launchbox Digital, and DreamIt Ventures. Many of these incubators are also in partnership with angel investors, and they are very hands-on when it comes to assisting and training new entrepreneurs.
A majority of new entrepreneurs put everything they have into getting their new business venture off the ground. This is commonly referred to as “bootstrapping.” With bootstrapping, an entrepreneur will use all their money to fund their business venture—whether it means making a product prototype, funding their business, or putting money down on a brick-and-mortar store-front, bootstrapping is what nearly every entrepreneur has done—or felt needed to be done—at some point at the beginning of their business venture.
5: Small Business Grant
The federal government grant offices provide funding for entrepreneurs starting a non-profit business. For more information on how to request grants to fund your business check out Grants.gov. One of the nice things about grants—as opposed to a loan—is that a grant does not need to be paid back, and credit isn’t a factor.
Beginning a new business can be daunting. Whether the entrepreneur opts for a bank loan or chooses to go with a newer, less traditional form of fund-raising, such as crowdsourcing, there are many more options than just these five. These are some of the most successful and simplest options available. When in doubt, seek out assistance from a local business or a local business school. Help is available to many new entrepreneurs. All you have to do is ask.