Financing Your Business
Getting your business funded and started is one of the most challenging steps in starting your business. However, there are many different ways to get funded. Below are some ways for you to try:
1. Fund it yourself!
Pros: Increased Motivation
Cons: Could lose a lot of your own money/increase personal debt
2. Raise money from family and friends
Pros: Support from family/friends
Cons: Risking relationship (make sure there are agreements), gain debt
3. Apply for Government Grant
Pros: Free Money
Cons: Typically need additional funding sources to apply, takes time
Pros: Free Money (no debt), Increase awareness of your business
Cons: Takes time, exposes your business idea to other entrepreneurs
Pros: High Lending potential
Cons: Typically avoid lending to startups, increase debt
Pros: High investment potential, can gain mentors
Cons: Typically take equity in the business, you need to know people in the investing network
7. Startup incubator or Accelerator Program
Pros: Can gain mentors, can win money
Cons: Limited amount of programs, competitive
8. HWCC- Yes we can help fund you :)
Pros: 3 different loan programs, free business consultation
Cons: Higher interest rates than banks (mandated by the government)
Learn about our Business Loans here.
Our Tips on Getting Funded
Be honest with your business plan and financials. Banks take these very seriously and failure to provide them is a major reason why startups don't get funded. In addition, they will look at: your experience, business transaction, and you.
If you want to stay debt-free try putting your startup on crowdfunding sites like Kickstarter, Indiegogo, and GoFundMe! If you do put your startup on these sites, understand the rules and how much they will charge you for using their service.
Talk to HWCC about our business loan programs. Our goal is to help your business get funded. We can fund your business up to $70,000. If you need more, we can partner with financial institutions to provide a larger business loan. (We've gone up to funding a $1,000,000+ project).