10 creative ways to fund your business

You need more funding to get your business going. Besides traditional financing options, what other alternatives do you have? The good news is that with a little creativity, you can definitely expand your options.

Let’s look at all the interesting ways to fund your business today.

1.   Crowdfunding

Crowdfunding is increasingly becoming a popular way to raise money online. Platforms like Indiegogo and Kickstarter have made it so easy to solicit donations from friends, family, and strangers. This still requires your creativity as you need to prepare a great pitch and set rewards per donation level. Plus, you also get to build a community around your project in the process.

2.   Offer advance-payment discounts

Another way to generate more funding is to offer your customers discounts if they choose to pay in advance. For example, if you’re running a service-based company or using a subscription model, you can offer attractive discounts if customers pay upfront for a quarter or year’s worth of service. This allows you to pool a bulk of upfront payments that you can use to realise the business opportunities or strategies you want to make happen.

3.   Big sales

If the advance-payment hack is not applicable to your business, you can also just run a special promotion in the form of a big sales event. People love bargains, and you need the mass of cash to drive growth. Ideally, piggyback off popular shopping periods like Black Friday or other seasonal events.

4.   Pre-orders

Another way to get paid upfront is to embrace a strong pre-order sales strategy. If you’re introducing a new product, it’s also a great way to validate the product idea before you commit to full production. If done right, this strategy can build hype and strengthen customer relationships as well.

5.   New revenue streams

To diversify your income stream and make your business more sustainable, you can also consider developing new offerings. This is particularly valuable if you are currently relying on a single product or service. To spread the risk, ensure longevity, and create a more reliable and consistent source of revenue, see if you can offer new products or services or enter new markets.

6.   Revenue-based financing

RBF is another way for startups to raise capital without diluting ownership– in exchange for a percentage of their future gross revenue. It’s a type of loan that many businesses find attractive because of its flexibility. Instead of paying a fixed amount, the ongoing payments fluctuate with revenue. The RBF loan is repaid until a set amount of payments is reached

7.   Strategic partnerships and corporate sponsorships

Look into building strategic partnerships with established companies or securing corporate sponsorships with businesses in complementary or related sectors. This is a great way to leverage not only their expertise but also their distribution channels and client base. Corporate sponsorships usually involve in-kind contributions, financial support, and co-marketing initiatives, helping you gain resources as well as exposure and brand awareness.

8.   Impact investing and social enterprise grants

If your business is addressing critical global challenges like environmental and other societal issues, you can explore the area of impact investing and social enterprise grants. Besides government agencies and philanthropic organisations, many other financial institutions like banks and pension funds are growing interested in helping mission-driven businesses.

9.   Join forces with accelerators and incubators

Startup incubators and accelerators are usually run by government agencies, universities, or other independent organisations. They’re meant to help companies unlock growth in a compressed time frame. By joining these short yet intensive programs, you can build your network, obtain resources, and access valuable mentorship. If you’re a new founder, this can be a great place to start, especially if you want to broaden your network and brainstorm with other early-stage entrepreneurs.

10.  Working capital loans

If you’ve gone past early-stage business and are just experiencing cash flow problems at the moment perhaps due to delayed client payments or other business setbacks, you can obtain quick access to working capital by using services like Swoop. Besides working capital loans, Swoop also allows you to explore a plethora of other funding options that match your current business needs. Whether you want to access business loans, get connected with angel and VC investors, or explore business grants, the platform allows you to find and access the best funding option for your business.

Get funded with Swoop!

It’s all simple, fast, and secure. Swoop’s matching technology will automatically compare thousands of financing options and offer you the best discoveries that match your goals and needs. Get started today.