Top 4 Ways to Secure Funding for your new Startup

A new startup requires a great deal of funding to stay afloat for its first year or until a profit is made. Funding must be in place and overheads must be low in order to have funding to re-invest back into the new company. While some methods of securing funding may be self-explanatory, others require a bit of creativity to achieve.

Private Investor

A private investor often wants no stake in your company unless there is a long-term funding agreement in-place. You will need to have a business plan and profit projection analysis available to present to the investor. Your pitch must also include why your product or service is relevant, how it works and how it adds convenience to a business’ operations or consumer’s life.

Private investors can become demanding and dangerous if agreements are breached. It is best to make timely payments to avoid courtroom proceedings later.


Personal Loan

Startups have not established any type of business credit. All of the funding falls upon the shoulders of the founder/s and their personal credit histories. A loan may be required to fund part of your opening or setup processes. You can obtain a personal loan online through options like, as an example, to have extra funding available quickly.

Personal loans are ideal for urgent situations where immediate funding for repayment is not available. The business can make payments on the loan while continuing to work toward turning a profit.


Partnerships are ideal for startups. The financial responsibility is carried equally through each partner. If there are four partners, the financial needs of the business until it profits is 25-percent each. In some partnerships, one or more members may be partners for the sole purpose of overseeing operations and taking care of administrative staff while the others are simply there to fund the business and have a few words when making business-related decisions.

Each partner may have connections to additional funding sources that can help the business. This can help create business-to-business connections that advertise together and support each other’s reputations.

Crowd Funding

Crowd funding is trending. Starting kick-starter campaigns is difficult, but with the proper approach and enticing information, crowd-funded campaigns can return large donations and outreaches from large corporations or investors to financially support the startup. To be a successful startup, your product/service has to be practical, in-demand, a convenience and worth its value. Consumers have to be able to see how a product works, why they need it and how it is going to benefit them before they will consider a purchase to help your startup on its way to a good profit.

Starting a business is stressful, especially when it comes to funding. Consider selling possessions that you no longer have interest in or time for. This can be the start of an emergency fund in case the startup gets into financial trouble. Always have a “plan B” for funding, such as an angel investor or joint venture partnership, to keep your startup moving in a forward direction.

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