Scott Cathcart

Entrepreneur | Impact Investor | Triathlete

The Best Ways to Raise Capital for Your Business

Whether you’re starting your business or have an interest in reinvesting in an existing business, it may be necessary for you to raise capital. Traditionally, this meant going to a commercial lender to prove you’re worthy of a large loan. While that is still an option, there are more ways for you to raise the capital you need for your business. Here are a few options open to you.

Find Your Funding

While it’s not always feasible to keep a job while you run a business, doing so provides you with an extra flow of income that you can use in any way you choose. This can help you keep up with your finances as you reinvest your business’ revenue in its growth. This is the preferable option because it means you won’t owe anything to a lender. Even if you still have to borrow some of the capital you need, working a second job can help you reduce what you’ll end up owing.

Seek Out Government Grants

There are plenty of opportunities for small business owners and entrepreneurs offered by the federal government. You can visit the website for the Small Business Administration to learn more about grants and low-interest loans. Additionally, you should visit your local Chamber of Commerce to learn about local and state programs designed to help people raise capital for starting or growing a business. Before you consider borrowing, it will be helpful to find out if you qualify for business development grants from the government.

Start a Crowdfunding Campaign

Another option that can save you from borrowing from a lender is launching a crowdfunding campaign. If you already have a large social media following, you can leverage those accounts to get more participation in your crowdfunding campaign. This involves allowing friends and followers to invest in your business. In exchange, you can offer incentives, prizes, or a percentage of your profits. Creating the rewards scale is up to you, but a better scale will generate more interest.

It may be worthwhile to consider those options that won’t leave you with large amounts of debt. After all, owing less means you’ll have a much more favorable profit margin. Each situation is different, and you must pursue the options that will give you the best opportunities to build or grow your business.

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