Looking for Other Ways to Finance Your Enterprise? Try These 3 Strategies:
September 21, 2021
By Daniel Ighodaro


Every great product costs time or capital to be brought to life. Imagine you have a game-changing solution to a problem, but you do not know how you will fund it. It is highly likely you have hard of the most conventional funding methods, but you do not think they quite fit. The classic funding styles include:

Angel - Networking and relationship based

Venture Capital - Arduous process; larger check with new network

Debt - Easier to secure as an established company

Family & Friends - De risk situation with expectations

Revenue based - Retain control with no liability for lighter capital

Self - funding - Easier to bootstrap when it is your money.

If you feel like none of these funding styles would apply to your venture, do not be discouraged! There are many ways to fund your venture that you may not be aware of.

As a rising entrepreneur, conventional methods of funding may be difficult to utilize if you are new to the space and have negative cash flow, however, there are some excellent alternative styles of funding to consider if none from the list above work for you.

Crowdfunding

Crowdfunding can be a great way to secure capital for your investors while validating your idea and building a community that is interested in your product.

Equity Crowdfunding vs General Crowdfunding

Equity Crowdfunding gives ownership in the same style as main areas of investing, but with a lot more investors, and much larger term sheet.

General Crowdfunding raises capital from people interested in your product or service and receive a benefit in the form of either a discount or free product in exchange for capital. Some popular general crowdfunding platforms include:

Start Engine

Kick Starter

Indiegogo

Grants and Competitions

Grants and Competitions are another way to acquire capital for your venture. Although you may find them boring and time- consuming, if you successfully secure an award through grants and competitions the money you receive generally does not have stipulations or debt attached.


Credit Cards

Using a credit card to finance your venture can be tricky, but if it is done correctly, it may be a great way to optimize payments for business operations. Cash float is the important main ability of business credit cards. You should consider the use of business credit cards to have a healthy cash flow when your revenue model takes longer than the times needed to pay expenses to operate your business.



Remember that there is always to finance and develop your venture. By thinking outside the box, you can unlock creative combinations of raising capital to transform your idea into the enterprise of your dreams.

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