Running a business can be fun, but it can also be challenging. One of the biggest challenges is finding the money to keep it going. There are several ways to fund your business without giving up control of it. In this article, we’ll explore three non dilutive capital options that will help you keep your business on track.
One of the best ways to fund your business is through bootstrapping. This means using your resources to get the business off the ground. This could include using savings, taking out a personal loan, or using credit cards. While this option may not be available to everyone, it can be a great way to keep control of your business.
It helps if you have been employed before setting up in business because that gives you chance to build sufficient funds to avoid the need to ask for sufficient financial support from elsewhere in the first instance.
Having the funds from selling one business to buy another can also help. A well-financed business is more likely to succeed but this should not be at the expense of you losing control as its owner. Certainly not from the very start, just when it is a matter of survival.
You could rely on a partner you live with or an immediate family member for financial support because then they might be less likely to want to take control of your business and just want to help. Everyone wants to see their loved ones or relatives succeed, and financially. Then who knows what the payback could be?
Crowdfunding is another great option for funding your business. This involves raising money from a large group of people, typically through an online platform. There are several crowdfunding platforms available, and each has its own rules and regulations. Be sure to do your research before choosing a platform.
This is a trending way to raise money that many charities have adopted. If your business is something of interest to others and they see its benefit within the wider community then this is a great option to gain support. Money helps grow a business when used efficiently.
As a group, we are more likely to make a difference and this is the same in business. It is how the cooperative business model works. A group of people will get together to fund, and in that case, run the business too. However, you only want the funding from investors, so always bear that in mind. Help is better coming from employment because then there is not that combined financial interest to restrict your business decision-making. Those with money and working in a business will invariably want more of a say in how it is run.
Angel investors are individuals who invest in businesses that they believe have potential. This can be a great option if you can find an angel investor who shares your vision for the business. However, it’s important to remember that angel investors will typically want some level of control over the business.
You can decide how much control your angel investor has. They should understand that it is your business at the end of the day. You have set it up and worked hard to get it where it is in terms of success. Understandably, they will want a good return on their investment and perhaps some say in how you are going to achieve it for them, either in the short or long-term. It always helps when investors are prepared to be patient in place of a greater return on their money.
Funding your business doesn’t have to be difficult. There are several options available, including bootstrapping, crowdfunding, and angel investors. Choose the option that best fits your needs and keep control of your business.