How to Fund Your Start Up

posted by Chris Valentine

It doesn’t matter what type of business you are looking to create, you are going to need some money in order to do so. The money which you will need to spend in order to get your start up off the ground will soon mount up, you will need to invest in products, manufacturing, staffing, marketing, rents, infrastructure and inventory and if you wish to start a truly successful business then it will be near-impossible to do so without some solid financial backing.

Many people will look to the bank to secure a business loan in order to get them started but this method can sometimes prove costly for businesses and the bank’s criteria for who they lend to and how much is far stricter now than ever before. There are however lots of different methods in which you can fund your business idea and here are some of the most creative ways for you to get the money you so desperately need.


Private Investment

Banks are not the only ones who will invest in your business and a great place to start is to look to private investors to stump up the money which you will need to get going. You will need to pitch your idea to them and have a sound business and financial model in order for them to have confidence in you and your idea. Very often when negotiating private investment you will forfeit some of your ownership percentage of the company, this may sound worrying but if the financial backing you receive enables you to grow a successful enterprise then it is well worth doing.

Dedicated Start Up Help

There are some fantastic organizations out there such as Capital for Merchants who specialize in investments for start ups or capital advances for start ups. These types of services will give you investments or up front capital for you to get your business started and then take a small percentage of each sale which you make until the original advance is paid back. Start up investment services are gaining in popularity as they can offer far better deals than the banks and can also provide you with first class tutelage and support in your endeavors to create a successful company.


Crowdfunding is a great way for your business to secure cash to grow via donations from the public and if your idea is good enough this can be a very viable way for you to secure some capital to take your start up forward. Using the internet, you will set up a dedicated page whereby people can leave small contributions to your business idea, you can lay out what your plan is and how you will go about your business. Once you have created a page then you can market this across social media and the public will be able to contribute to your financial target. Over $34 billion was raised in the US alone through the crowdfunding method and if you think you have an idea that people will love then this could prove very fruitful for you and your business.

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