How to Get Additional Funding for Your Business

by Alex Feldman

September 25, 2018

Running a small business is often fraught with difficult choices, especially in the early years. One of these choices is whether to grow your small company or wait to see if you can get more from your existing products. If you do choose to grow, then you also have to decide how you can fund the growth without risking your existing company. Here are some of the ways that you can fund your business the right way.

Investors

One way that you can get your funding is by seeking investors to support your company. They will typically be people who run their own businesses and want to help new companies by giving them funding. The only problem that some new business owners object to is that investors usually want to own part of the company as a condition of the funding. It means that if your company makes a profit, then your investors will take a small percentage of it. However, investors can be good for your company as well, as they can offer more funding at a later date if you want to grow the company more.

Investing

Rather than seeking investors, you could become an investor yourself. By investing in property or stocks and shares, you can generate an income that can help you finance your business. However, you need to choose your investments wisely, or you risk losing money. If you need something to help you manage your investments, then applications like the TastyWorks Platform can help. The only issue with investing is being able to generate enough money to sink into your company.

Crowdfunding

For some companies, crowdfunding is a great way to get additional funding without having to borrow money or use investors. It works by having an idea for a product or new company and asking people to give small amounts of money towards a goal that you specify. In return for giving you this money, you give them an early version of the product or give them early access to the company. There are many such platforms now running they are becoming increasingly popular.

Franchises

One good way to get some additional cash and grow your business at the same time is to start offering franchises. A franchise is essentially a copy of your business that another business owner will start and run for themselves. It gives you growth for your brand and an income from the franchise sale, but you don’t have any of the running costs associated with having another outlet. Franchises are also good at getting into other areas of the country or in fact other countries without having the set-up costs involved.

Seeking funding for your company is hard, and many small businesses struggle to attract the funding they need. However, if you can start with a good plan in place and use some of these techniques, then you will soon be able to grow your business and start generating more profit.