Starting a new business is exciting, but raising the capital for it can be overwhelming. According to reports done in 2020 by the small business administration, small businesses borrowed nearly $650 billion that year. If you are trying to secure funding for a small business, you are not alone. Here are three ways you can raise capital for your Denver business.
- Bootstrap it. If you’re starting a business with minimal startup costs, you can always fund it out of pocket. Lawncare businesses and pet businesses are two businesses that can be started with little to no startup costs. For emergencies, you can invest in a good credit card and invest your money as you make it.
- Do a crowdfunding campaign. Crowdfunding campaigns have grown in popularity in the last decade, and for good reason. Many people love investing in these campaigns, which can be a great way to raise the capital you need to start your business. When securing crowdfunding money, it is important to have a good pitch and a lot of things to offer your investors.
- Apply for a loan. Finally, despite all the new and inventive ways to raise money for your business, loans are still the most popular way to do it. However, applying for a loan has more requirements than other methods. To get a business loan, you often need to have been in business for two years or more, have a strong annual revenue of at least $100,000, and have a good credit score. There are a variety of small business loans, and a lending company, such as Aspen Commercial Lending, can help you find the one that is right for your business.
One of the most common reasons businesses fail is because they do not have enough capital to keep their doors open. The best way to prevent this is to make sure you create a realistic list of your expenses and secure the funding you need to cover them. There are many ways to secure funding for a small business, but three of the most common are paying out of pocket, crowdfunding, or applying for a traditional loan.