Many people have great ideas that never go anywhere because they don’t know the logical next step beyond the idea. Those that do wish to explore the option of startups may struggle to find the right type of financing. If you have a business idea, no matter what the industry, there are options to get your business off the ground. 

SBA Loans

The Small Business Administration exists to help small businesses get off the ground and find avenues for success. The SBA has special loans for startups, along with several different options. 

Whether you need capital to start the first phase of your business, or you’ve started but need funding for further development, the 7(a) and 504 loans could prove invaluable to you. If your idea is small-scale, an SBA microloan might be perfect. 

There are advantages to acquiring funding through the SBA. Rates are competitive, you don’t have to have perfect credit, and they offer terms as long as 25 years. 

Finding Investors

If you have family or friends who believe in your idea, it won’t hurt to ask them to also back it monetarily. Negotiate an offer in which everyone wins. 

Some startups have also found success using angel investors. These investors are waiting on the next great idea. That idea could be yours. A platform such as AngelList exists solely to match investors with startups. 

Crowdfunding

Crowdfunding is a bit like angel investing, except your investors may not have large amounts of cash. What they do have is numbers. If you can get a number of people to invest small amounts in your business, you can end up with healthy funding for your business. 

There are several different types of crowdfunding sites. Some of them are rewards-based, while others are donation-based. Be sure to thoroughly investigate your options before choosing one. 

Grants

Many entrepreneurs overlook the option of grant funding. With grants, you can get all or a part of the funding you need without ever having to pay it back. Government entities may offer grants, but so do private businesses such as Amazon. The biggest drawback to applying for grants is the competition. 

There are many options at a startup’s disposal for finding funding. Just because one avenue turns up dry doesn’t mean another will. A true entrepreneurial spirit doesn’t give up trying and eventually finds a route to funding and success. Knowing you have options is your first step.