5 Key Financing Options for Your Startup Businesses – 2024 Guide
Every famous brand, large corporation and any other successful business was once a startup. A startup that needed help in terms of financing and marketing. However, with enough effort and time invested into the right field, a startup of that type can easily grow into something phenomenal, sometimes in even less than a year.
It’s no doubt that 2024 was a very difficult year for startups. In fact, most didn’t even manage to survive the global pandemic and the mild economic crisis that our world faced as a result of it.
In today’s article we’ll talk about the best financing options for your startup in 2024. In case you have your own business plans for 2024 or you’re trying to push your already-existing business forward, now’s the right time to learn more. Let’s take a look.
1. Crowdfunding campaigns advertised in the public
Crowdfunding campaigns are a very popular way of funding for businesses. There are many ways to apply for such a crowdfunding campaign, or you can even create your own campaign on sites such as Kickstarter. However, Kickstarter is a website with a real broad range of categories, and it’s mostly about products, not entire businesses.
However, portercap.com for example is a website where professional funding services can be used to quickly boost your startup. If you choose to go with a public campaign, remember that you’ll have to spend a lot of time and effort in advertising. Without ae huge audience it will be difficult to fund your startup unless you’re using this method only as an extra way of earning, not the main source of income. Sites such as Patreon are also quite popular.
In case you need more information about crowdfunding and especially crowdfunding for nonprofits, you can check out Donorbox. They’ve listed the best platforms and several tips regarding crowdfunding, so make sure to check that out!
2. Private investors
Private investors are difficult to find. And, it’s even more difficult to get an investment from them, simply because they’re quite picky about where they put their money. However, if you manage to lend a deal with one of these investors, that investment can single-handedly power up your entire startup for the upcoming few years.
You don’t need to have contacts with individuals who invest in startups. There are investment companies you can reach out to in case you’re really dependent on money at the moment. Wondering how? A quick Google search will point you towards the right direction. You can also apply online if there aren’t any local companies who help with investments.
3. Love money – Support from your family
Family is always here to support us in everything we do, including our first business. It’s not a rare thing for a startup to get “powered up” by love money. For those of you unfamiliar with the “love money” concept, it’s basically funding you get from your close ones, whether as a gift or by making a contract. It comes in the form of a donation but they may or may not get something in return for it. It all depends on your policy and how you set it up.
You can always combine two different methods of funding to reach your final financial goal. So a private investor with the help of your friends and family is probably better than just a private investor. The more money you get at start the better for you. In today’s corporate world money equals safety for startups. Unfortunately, businesses without enough budget on start get buried down under the competition.
4. Loans for startup businesses
Almost every country has an official government organization that’s responsible for funding potential ideas and startups. However, this is also a place where the most participants apply for an investment, meaning your chances to get a part of the yearly dedicated budget will be slimmer. However, the budget is separated in multiple categories, so depending on the category in which your business belongs, you’ll have better or worse chances.
For example, a country separates about 40% of the yearly startup investment budget for tech-related businesses. 30% for anything related to sport, 30% for something else etc… The numbers are actually quite different but this was just an example. You get the idea. The more popular of a category you’re applying for, the higher the chances you end up with an investment from the government.
5. Business incubators
Business incubators are meant to “powerstart” startups and almost every country has one you can collaborate with. They basically work together with the government but they make it so much easier for you to get funding because they deal with all the grant-getting procedures, and you’re just there to be chosen for funding. If you manage to establish good collaboration with a business incubator you can really boost up your business.
Another great thing about business incubators is all the exposure you get by working with them. So, you’re also getting free marketing and not just a startup budget. Usually, these business incubators are popular and have great presence on social media, so just by announcing you’ll be a part of an incubator should draw some attention and exposure towards your startup. Consider this as a possible option for funding and overall development if all else seems bad at the moment.
Conclusion
Without proper financing, many startups are just an idea. There are tons of brilliant business ideas with the potential to turn into very successful projects, but because of the harsh competition present in today’s corporate world, most of them fail right from the beginning.
It’s not easy to get your business financed. There are many other similar businesses trying to do the same, so you have to really stand out in front of the investors, or find another way of financing. In today’s article we covered five key financing options for your startup, so feel free to check them all out and give them a try if you’re able to do so. Hard work and dedication will take you a long way so don’t give up on your business because the beginnings are always the hardest. Stay safe and we’ll see you in the next one.
