Today’s Tip
Best Practice: It takes capital to create and implement a brand. Strategies can include: savings, loans, investors, grants, crowdfunding.
Today’s Article: 16 Ways to Find Money to Create and Implement a Brand
It takes capital to create and implement a brand. Here are 16 strategies to explore: angel investors, bank loans, crowdfunding, customer capital, factoring, family and friends, finance company, government loan, grant, leasing, microloan, personal credit card, personal loan, personal savings, trade credits, and venture or equity capital.
Angel investors are high worth individuals that invest in local smaller companies for a return on their money and/or ownership in the company.
Bank business loan is money that is more often available for an “established” successful business. Banks prefer to make a loan to an existing business versus a start-up to lower their risk in lending.
Crowdfunding is money that is raised on the Internet i.e. Kickstarter. Crowdfunding can be for a start-up or an existing business.
Customers capital is pre-sold products or services to customers to raise capital.
Factoring involves a business selling its accounts receivable, or invoices, to a third-party commercial financial company, also known as a “factor.” Businesses can access cash now versus waiting 30 to 60 days for a customer payment. Factoring can also be called “accounts receivable financing.”
Family and friends can provide money for an entrepreneur to start or grow a business.
Finance companies can be profit and non-profit organizations that loan money to businesses i.e. Small Business Investment Company (SBIC). This source of money can be for start-up or an existing business.
Government loan is money that the government allocates for backing a loan where an entrepreneur borrows from a local bank or microloan organization i.e. Small Business Adminsitration (SBA) Loan.
Grant is money that a business does not need to repay. Grants are usually more available to a non-profit verses for profit business. SBIR would be an example of a grant for a for profit businesses.
Leasing is a way a business can lower capital needs by leasing versus buying.
Microloan is a loan typically under $50,000 and a source of funding for a start-up or existing business with good credit.
Personal Credit Card can be a source of money for buying goods, services or taking cash advances.
Personal Loan can be a source of money from a bank to start or grow a business. May be easier to get than a business loan when starting a business.
Personal savings is money or assets that an entrepreneur owns or has access to start or grow a business.
Trade credit is buying products or supplies on credit to initial lower capital requirements.
Venture or equity investor provides money to entrepreneurs to open or grow the business in exchange for owning a portion of the company and being involved in making company decisions.
Action Step: Select from one or more of the strategies above on how you will pay for your branding and click on the link to learn more about them.
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