6 ways to raise funds for your business

With nearly half of every new business failing within the first five years, those who do make it through this crucial period know that having adequate funding is critical for success.

Here are 6 ways you can raise funds for your business

Family & Friends: This is usually the first resort for most entrepreneurs, it is the funds or loans you get from family members & friends to finance your startup or growing business.

Angel Investors: These are individuals with a large amount of money, who are willing to buy into your dream and invest their money into your business for a certain amount of equity or ownership. This type of investor most times also provides mentorship for the business.

Small Business Loans: This option of funding connects you with lenders who are willing to provide financial assistance in the form of loans to your business, provided you meet their funding criteria.

Grants: This type of funding is usually financial awards from either government or private institutions to help your business incentivize performance. Grants usually do not require repayment.

Crowd Funding: This is an interesting funding option that involves the setup of a funding campaign on a crowdfunding platform (Kickstarter, Indiegogo, etc.) so that individuals/investors on that platform who are willing to support your ideas or business can fund it.

Venture Capital Financing: This is a type of financing from private equity companies. It involves venture capital firms investing in your startup or small business when you meet their investment criteria & they believe you have long-term growth potential.

What funding option are you considering or what option have you adopted?

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