I know you’ve heard the phrase “it takes money to make money”. Whether you agree with that or not, more often than not limited capital is a huge obstacle to growing a small business. It takes more money to hire the team to service the clients you are investing on marketing to bring in. It takes more money to scale your technology and be more efficient at some of the support your business needs. It takes more money to play the numbers game that is paid traffic. When you aren’t bringing in enough revenue to fund expansion where do you get the funds? Here are 5 ways bring in more money to make more money.
Grants. There is free money for your business out there in the form of non-repayable fund grants.
The usual criteria can include your business type, your business’ purpose or impact, geographic location, business size, financial need, your industry, or even your business’ certification status.
Places you can find grants for small businesses are government agencies on the federal, state, and local levels. Check https://www.grants.gov/ and the SBA at https://www.sba.gov/funding-programs. Also, check the local store of national chains like Walmart.
Venture Capital Investments. Funds from firms that invest in up and coming businesses to make a return on investment.
The usual criteria can include whether your business is in a growing market, what makes your business stand out from others, what traction in revenue and growth your business is already experiencing, and an exit strategy for the investment.
For venture capital investors go to places like CrunchBase, and CBInsights.com.
Angel Investments. Similar to venture capital investments, angel investments but usually only one person who is using their personal funds to invest.
The usual criteria can include investment size needed, risk tolerance of the investment, involvement with the investor, and any preferential criteria they wish.
For angel investors go to places like AngelCaptialAssociation.org, AngelList.com, and SeedInvest.com.
Peer-to-Peer Lending. With the word peer commonly referring to friends or people similarly situated, this type of lending usually comes from a group of individuals rather than professional investors.
The usual criteria can be much like a bank loan and include credit rating and the ability for repayment.
Places to find peer-to-peer lenders include LendingClub.com, FundingCircle.com, Kiva.org, and Upstart.com.
Crowdfunding. Very popular in recent years, it is small individual investments from a large number of everyday people (the crowd) mostly through online platforms.
The usual criteria is a compelling story, great vision for success, positive impact, community support, great communication (updates), proof of concept, and incentives or rewards.
Platforms to find crowd funders are IndiGoGo.com, CrowdFundr.com, WeFunder.com, CrowdCube.com, and KickStarter.com
If you support with a roadmap to show where strategically are the best areas to invest in your business so that funding gives a return on investment, let’s talk. It’s FREE. ShaCannon.info/talk