Funding is an aspect that doesn’t occur to you when you are all excited about starting a new business and finally bringing your ideas to life. Because we often don’t know how much it would cost to set up and run that great idea.
However, as we begin to plan and count the cost, the subject of funding begins to become more pressing. As an entrepreneur, funding is one of the most important business decisions you will have to make. And it is not a one-time decision. Funding is a continuous business need. You will need funding to set up, expand, execute a capital project and even invest.
But as your business continues to grow, your funding options increase. That is why it is easier for an existing business to access funds than a new one. Whichever stage your business is -just starting or you’ve been around for a few years - here are six funding options you should consider.
- Self-funding/bootstrapping
- Family and friends
- Investors/Venture capital
- Grants and loans
- Crowdfunding
- Partnership
Although self-funding often looks like the most reasonable option when starting because you are not under pressure to pay back or meet a target, the other options should be given fair consideration too. If you cannot self-fund, drop your ego and anything else you need to drop and get the money elsewhere. The project might be too big for you to self-fund, and halfway funding is failure almost guaranteed. The liability might also be too much for you to bear, so get other sources to support whatever you have.
Plus, external funding gives some extra motivation to be successful.
