10 ways to raise funds for a business
Recent studies have shown that over 94 per cent of businesses fail within a year after launching their operations. Inadequate funding is among one of the most common reasons why a business fails. Funding is the lifeline of any business, as all businesses require capital to convert an idea into a revenue-generating enterprise. In 2016 alone, about 73 per cent of all small businesses in the US required financing.
At the very beginning, all startup businesses need funding. It is from the money obtained through funding that goals such as commercialization, building a website, software production, employing your team, opening an office and improving your product or service delivery.
If you are worried about how to raise capital for your business, then you are not alone. Thousands of entrepreneurs do not have the amount of money needed to run their businesses efficiently. Like you, these business owners resort to funding to raise the capital they need.
Here is a list of 10 ways through which you can raise the money to fund your business operations:
- Bootstrapping your startup business
- Start a crowdfunding campaign
- Get funding through bank loan applications
- Raise funds through family and friends
- Get angel investment for your business startup
- Acquire financing from venture capitalists
- Get capital from business accelerators and incubators
- Join and win contests to help fund your business with the prize money
- Loans from non-banking financial corporations (NBFCs) and Microfinance institutions
- Government programs that provide capital for startup