And no- casinos are not viable to raise business funding.

You are not alone if you desire raising capital for your business. In 2020, some form of finance was used by 73 percent of small businesses.

While money does not grow on trees, you can pursue financing for your company in a variety of ways, some more conventional than others.

Here are six ways to collect the capital you need for your company to grow.

  1. Bootstrap your company
    If your company does not work in a sector that needs a lot of start-up money, such as development or transport, you may be able to finance your own business, and it may be more feasible than you think.

For example, you could get a 0 percent / low interest APR business credit card, even though you don’t have enough savings to operate the company, giving you the ability to borrow cash for a period of time without incurring interest.

Maybe you think financing the company yourself carries a lot of risk, and it does. But your ability is important to remember.

“If you believe in your vision and have an absolute refusal to consider failure as an option, you should feel comfortable investing your own money in the business,” says Brent Gleeson, a leadership and team building coach specializing in organizational transformations.

Usually, spending some of your own cash would make buyers and lenders more likely to partner down the road with you.

  1. Start a campaign involving crowdfunding
    There are several tales of crowdfunding success out there. And you can be one of them with the right product and pitch.

Formlabs, a manufacturer of affordable desktop 3D printers, raised $3 million on Kickstarter in 2013 , for example. This capital allowed the company to scale up its business and achieve its goal of producing affordable 3D printers for the public.

Eventually, venture capitalists captured the interest of the 3D printer manufacturer. Formlabs closed investments of $19 million during a series A round, allowing them the ability to grow beyond their initial targets.

Crowdfunding offers you the chance to communicate with like-minded individuals who you wouldn’t otherwise be able to interact with. You will evaluate your interest in your brand and understand what resonates with individuals and what is not. This shows you how your product and your pitch can be improved. Most importantly, to fund your business, crowdfunding will help you raise capital.

So, how do you start a good crowdfunding campaign for your company to raise capital?

Nathan Resnick, a serial entrepreneur who has succeeded in raising funds on crowdfunding platforms, emphasizes that as “people on crowdfunding sites such as Kickstarter or Indiegogo want to know how you have transformed your idea into practice,” you must establish your tale.

The importance of your product, the need it serves, and why you require help must be illustrated by your video pitch. Getting a popular website and doing PR outreach also helps.

  1. Request a loan
    Even as technology develops new ways of raising money, the predominant way small businesses finance their operations remains with conventional financing items. Nearly 75% of funding for new businesses comes from business loans , credit cards, and lines of credit, according to the Small Business Administration ( SBA).

In general terms, SBA loans and term loans from banks and other financial institutions are going to be the small business loans with the most attractive rates and terms. You usually need to meet criteria such as the following to get approved:

You’ve been in company for 2 or more years,
The organization has high annual sales (usually at least $100,000)
Strong credit (like a 640 + score)
These are not tough and fast rules and, depending on the lender, can vary. There are other, but more costly, forms of financing available if you don’t qualify for a term loan with a decent APR.

You could opt for invoice funding to get the money quicker if you have unpaid invoices. Or, consider equipment financing if you need cash for machinery, technology products, office furniture, or anything similar.

Be sure to file any loan documents you may need to display ahead of time before applying for a small business loan. You will be asked to present a statement of profit and loss, balance sheets, tax returns and bank statements. Your personal details may also be verified in some situations.

  1. Capital raising by telling friends and relatives
    For many, raising capital through friends and family is a viable option. 5 percent of US adults have invested in a business started by someone they know, according to the Global Entrepreneurship Monitor.

A content marketing expert and SBA blogger, Caron Beesley, recommends that you preferably choose a friend or family member with strong business skills. She also recommends that you “narrow down your list to friends or family who believe you can succeed, who understand your plans, and who are honest about the risks.”

If you’ve done that, Beesley emphasizes that by having a solid business plan and direction, you must show enthusiasm and due diligence. Also, on how much money is required, be practical.

Eventually, make sure to agree on what shape the financing will take. In your company, it might be a loan or equity. If the money is a loan, agree to a repayment plan and use a platform for P2P lending to record it and handle the loan.

  1. Locate an angel investor
    Angel investors are, by definition, certified individuals with a net worth above $1 million or over $200,000 in annual profits. Usually, they work alone, but can team up and form a fund with other angel investors.

Knowing this, angel investors may be a strong source of your company’s money. Second, you have to put together a good business plan and have a fantastic pitch ready. With excitement and exciting data points on the current situation and future prospects of your organization, you need to catch their attention.

You may be wondering how angel investors are identified. This may seem overwhelming, but there are many tools.

Funding Post, for example, arranges showcases for angel investors around the world. And the Angel Capital Association is an ideal forum for angels to look for, meet, and plan pitches.

  1. Get venture capitalists’ investment
    Usually, venture capitalists ( VCs) want to invest in slightly more mature firms than angel investors and also want to have more say in day-to-day operations management.

They want scalable and cash-flow positive companies with proven and scalable goods and companies, because VCs have a duty to produce those returns for the company or fund.

If your business meets these conditions, you may apply to a VC firm for an investment. It’s not the easiest thing to do, but it’s been achieved successfully by a lot of small companies.

For securing support, the pitch is critical. Sequoia, one of the world’s most popular VC businesses, stresses, “you need to express the key reasons why your company should be loved by an investor in the first 5 minutes.” Sequoia partners say that in three easy measures, you can do this:

Explain what has altered. Detail the creativity, market change, or issue that poses a significant opportunity for your company.
Just explain what you’re doing. In one sentence, demonstrate how this opportunity can be capitalized on by your company.
Explain those facts. Quickly get to the story and financials of your company. With figures, set out the potential. Discuss the team and the expertise and knowledge they have.

Get the money you need to press forward with
The main lesson here is that you have many choices for your organization to be financed. If one doesn’t work out, don’t get discouraged. You will collect the money you need by showing due diligence and being resourceful and diligent.

Then, your business will no longer be held back by money. To extend, you’ll be open.