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Funding a Business: Your Options Explained

A study from March 2021 showed that 20% of startups closed shop after one year in business.

There are many reasons for this, but one is that they run out of funds. It takes time to get steady cash flow for your business, so the first step is to ensure you have sufficient business funds.

But how do you go about funding a business? How do you ensure you always have enough when running a company?

Here’s the financial plan you need for funding a business:

Do Your Research

The first step is to attract business investors but for that, you’ll have to do your research on the market.

For example, you can look at the Fidelman & Co case studies to get an idea of how some businesses thrived. When pitching to business investors, you’ll have to present them with a pitch on why your business is likely to succeed.

You have to ensure them that funding your business is worth it for them, and not just for you!


Another simple method for funding a business is to ask for donations from your network—and any good Samaritans outside your network.

You can use an online crowdfunding platform to present your business and explain what it offers. Visitors can make donations and these will get sent directly to your bank account.

You can also simply ask around via word of mouth. Make sure you let them know that this is a donation and not a loan. They might want something in return including stock in your company.

Offer them other gifts and rewards rather than stock. During the early stages of a company, you want to have complete ownership and control over it.

Taking a Loan

If you struggle with receiving capital from business investors or via crowdfunding, the next best option is to apply for a loan.

You can go to your local bank to ask about their loan options. You might even be able to get a loan from your local government. Many local governments offer loans to help small businesses get off the ground.

Selling Products and Services

Of course, nothing beats funding a business than just getting started. Before you register your business, consider working as a freelancer before you scale.

Sell your intended products and services at a lower rate. You can consider selling a simpler version that lets you make fast cash. Save as much of this cash as possible to scale your business.

If you opt for this route, you’ll have to handle all the tasks yourself so you can keep your expenses low.

Now You Can Start Funding a Business

Now you know how to go about funding a business and getting your entrepreneurial venture off the ground.

You can research case studies to help you pitch your startup idea to potential business investors.

Another option is to crowdfund. You can use a crowdfunding platform or ask your network for donations. You can also go to your local bank or government to apply for a loan.

The best route is to start freelancing so you can make fast cash and get your business known.

You’ll find more business tips on our website.