Being a small business owner is no small feat, and it can seem overwhelming to many people. However, the prospect of being your own boss and doing something that you truly love is an exciting one.
Unfortunately, one of the biggest hurdles that potential small business owners face is how they’ll get the funding they need to start and grow a company into a viable source of income. That’s why the accounting service experts here at KRD Tax & Consulting are happy to share these five funding options that can help you turn your dream into reality.
Different ways to get outside funding for your small business.
Ask your friends and family.
While the idea of asking for a loan from your friends and family can seem uncomfortable for many people, it’s actually an effective and cost-efficient means of funding your small business endeavor.
By going through the people who you’re closest to instead of a financial institution, you can obtain a loan regardless of your credit and avoid unfavorable lending terms and conditions. Plus, if you have an excellent idea for a company, you could be surprised at how willing your loved ones are to help you find success.
Make a request on a crowdfunding platform.
One of the biggest perks of the growing prevalence of digital platforms is that small business owners have numerous avenues to gain funding outside of traditional loans and accounting services. One of the most popular is crowdfunding sites such as GoFundMe, Kickstarter, and Indiegogo.
These platforms allow you to share your vision online and set a funding goal. You can then share your request on social media, and anyone who sees it can choose to donate an amount to help fund your new venture.
Research community development finance institutions.
Nearly every local community strives to increase the area’s prosperity and grow their economy, and one way they do that is by funding new small businesses in the region through community development finance institutions (CDFIs).
These non-bank lenders accept applications for loan requests, and based on the viability of your idea, can provide the necessary capital to launch your small business with terms that are fair and reasonable.
Take out a small business loan.
If you’re confident enough in your entrepreneurial spirit and the concept behind your new business, then taking out a small business loan is an effective way to secure funding for your company. By going through a bank’s accounting services, you can obtain the upfront capital you need through a variety of ways.
Whether it’s a business line of credit that’s akin to a credit card for your company, an SBA loan, or financing for specific pieces of infrastructure, there are numerous options available.
Consider giving up equity in your business.
Equity financing is the process of receiving capital while ceding some portion of ownership of your new business. While you may not love the idea of handing over equity of your company, this type of accounting service does come with many benefits.
One of the most significant is that you receive the funding without having any obligation to repay the investment. You also gain a mentor who has a vested interest in your success and can provide helpful insights and connections to invaluable resources that’ll help you prosper.
Are you considering starting up your own small business?
Then reach out to the experts here at KRD Tax & Consulting. As a Colorado-based consultancy firm, our team specializes in helping small businesses across the nation succeed. We do this by providing the accounting services you need to keep your finances in order while focusing your time and attention on the business-critical tasks required to grow a successful company.
Learn more about the services we offer, or reach out to us online to schedule your initial consultation.