4 Great Ways to Finance Your New Business Venture

In college, dream of opening a book publishing company representing historically underrepresented communities within the publishing sector. Believed that bank loans or coming to a financially secure family were the only ways to finance a business venture. I was a student who had no credit history and was in debt. Applied for a loan at the bank and have laughed out the bank.

Researched and found that the best way to finance my dream publishing business was to start it myself. The internet provided me with free information: blogs, articles, and financial planning tools to estimate the cost of starting my new business. Also found lists of side gigs for college students and have been a freelance writer since high school. Freelancing helped me save for my dream company.

Worked over 60 hours per workweek and maintained high grades in graduate school while planning my future business. Managing five people and working with more clients than could handle. This made it difficult to retain my high-quality copywriting, editing, and writing services.

Although knew freelance work could grow into a business, and did not have the capital necessary to do it. Freelance copywriting and editing services are needed in this digital age.

Learning to finance the digital marketing company prepared to create an independent publishing company. Understand where to find resources online, and already had many resources saved in computer. Knowing the cost of business expenses. How to prepare for unexpected business costs. Able to find help for free and concentrated more on organic social media than paid ads to generate business. I learned from my mistakes while planning and building my digital marketing business.

Bootstrapping is not the only method to finance a business. Here are some alternatives that I discovered and some recent discoveries when I was looking for funding.

1. Business credit cards

Recently learned about business credit cards’ true power after reading several articles on the subject, including a Yahoo Finance story about how fellow 27-year-old serial entrepreneur Jack McColl leveraged business credit to create four six-figure businesses. It was discussed in the article how relying on personal savings can be harmful to your business. However, business credit cards enable you to borrow money from banks to scale your business faster. 

Business credit cards provides a higher borrowing limit than own credit cards, which means you have a good opportunity to build your business credit score. Many business credit cards offer 0% interest, which can be rare with a personal credit card. Additionally, your individual and business credit scores will be affected by a business card.

2.Venture capital

Venture capital usually comes from financially stable investors, investment banks, or other financial institutions looking to invest in startups and small businesses with long-term growth potential. Investors will require a flawless business plan as well as quantitative evidence that supports your growth potential. If investors choose to invest in your company, there is one caveat.

3. Crowdfunding

Crowdfunding refers to a form of investment in which other people contribute funds to your specific needs. GoFundMe and Kickstarter are well known examples of crowdfunding. Aspiring entrepreneurs can post their financial needs on platforms such as GoFundMe. They can also share their donations links via social media. Venture capitalists often receive smaller gifts than those who donate to charities. Entrepreneurs who rely on crowdfunding should plan for their campaigns and business to fail. Entrepreneurs don’t want their companies to fail. However, they may face legal consequences for not fulfilling their business promises or underdelivering. A contingency strategy can save you from angry donors and legal action.

4. Small-business loans or grants

SBA works with lenders to make it easy for small businesses to receive loans. Many of these loan programs offer ongoing financial counseling and education for entrepreneurs to help them start and run their businesses. SBA grants, surety bonds, grants, investment capital, and disaster assistance are all available to entrepreneurs. SBA programs require entrepreneurs to prepare a business plan, expense list, and financial projections over the next five-year period.

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Samatha Vale
Samatha a senior writer for HC's entertainment team. She is an entreprenuer, mother and an excellent writer. She's also an avid reader, music enthusiast and all around inquisitive person - which is just a nice way of saying she's nosy.

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