Studies show that 29% of small businesses fail because they run out of capital. It takes lots of effort, mentally, physically, and financially to get a business off the ground, which is why many businesses fail within the first five years. Generating enough sales and overcoming cash flow challenges is a sure way to keep your business going. Because no money means no business. So, here are three small business financing options.
Many entrepreneurs go through this route when trying to fund their businesses. It involves starting your business from scratch with little cashflow. In this case, the entrepreneur is merely raising money from personal resources. It could be through family members, friends, or the sale of personal property.
You don’t have to rely on investors or venture capitalists here; you retain your independence. And any money grown from the business is reinvested back into the business. Studies show that around 77% of small businesses primarily fund themselves through personal savings and finance. Still, only 40% of all new companies are reportedly turning a profit with 30% breaking even and another 30% recording continual losses.
Crowdfunding is a low-cost way for entrepreneurs to raise money. Studies show that Entrepreneurs take the highest market share of about 41% for successful crowdfunding campaigns.
It involves a large number of people contributing small amounts for a business. There are different types of crowdfunding. There is the equity-based crowdfunding where whoever pledges gets a percentage share of your business. Then there’s the donation-based where people give money to your business without expecting anything in return. There is also the reward-based where whoever pledges gets a gift, which could be in the form of service or products.
The organizers set a goal for the fundraiser and get people to contribute. Crowdfunding is one of the effective small business financing options, and studies show that 78% of campaigns exceed their goals. So, it is worth the try.
Loans are the most popular means through which businesses generate the cash they need to operate their business. Although acquiring a bank loan can be stressful and time-consuming, Reliant Funding offers a service that simplifies the process.
The process of applying for funding with Reliant Funding takes less than 30 seconds compared to the days or weeks from the traditional loans. We focus on your business results, making the process seamless for you.
We’re a business that focuses on helping you get your funding and avoiding the many hurdles from the traditional funding route.
Are you ready to take your business to the next level?