If you are thinking of starting a business this year, you will be happy to know that you have a lot of funding options.
There was a time when the only way to fund a business was to take out a small business loan. For many years the Small Business Administration was the number resource for startup business owners. Don’t get me wrong, the SBA is still a good place for business startup financing, but there are also a lot of other funding options currently available. This includes crowd funding.
For the past two years, crowd funding has become a popular financing source for startups. For those who do not what crowd funding is or how it works, it is a collection of funding that comes from several different businesses or individuals. For example, a group of people from the same industry may get together and pool their financial resources together so they can invest in a startup. These investors will usually invest in a startup in an industry they are familiar with, because it is easier for them to understand the business plan and how the company should operate. There are some crowd fund investors that are in it for the long haul, while others want to cash out their investment in one or two years. So far the crowd funding strategy has proven to be very beneficial for thousands of startup business owners.
Then there are also groups of businesses that pool their resources together in order to fund several startup companies. This type of group usually has a very strategic investment portfolio. Typically when an investment is made from a group like this, there is generally millions of dollars involved.
In most cases when a startup businesses is able to generate this type of funding, they have a solid business plan and have proven that they will grow into a very viable and profitable business. Remember, the number one goal of any investor is to make a high return on their investment. I also want to note that a large number of the startup businesses that have used crowd funding are in the technology field.
Another way many startup businesses today are securing funding, is by going online and taking bids. This is a relatively new way to generate funding, but it seems to be catching on. If you go on the internet you will find articles about several startups that were able to get financing this way. Some of the types of businesses that have been successful using this option are online fashion stores, candle making companies, concierge services, gift basket businesses and a wide variety of e-commerce retail sites.
With so many new funding options available, it looks like 2014 is the right year to start a business.