You’ve got a great business idea and want to put your idea into action. Or maybe you’ve already taken that first step. But how do you keep your business going?
One of the main reasons businesses fail in the first couple years is that they simply cannot raise enough capital to keep going. In fact, financing a business is one of the biggest challenges an small business owner will face.
What Are Your Funding Options?
Startup Canada published an article 5 Types of Business Funding Sources that is definitely worth a read. One comment stood out – I’m sure you know that the Canadian government provides funding but did you know that when it comes to small business government funding, every province has it’s own funding agency. Within each province there are many other funding agencies that provide government funding to startups and entrepreneurs for various purposes, various needs with various goals. I didn’t know that previously.
5 types of Business Funding Sources for Small Businesses:
- Government Funding (grants, loans, tax breaks and financial assistance)
- Private Investors (equity investors, venture capitalists and angel investors)
- Family and Friends
- Business Partners
- Personal Finance
As a small business owner, you have to consider all of your options when it comes to funding. Read the full article to find more in depth details on what options are available for funding source.
Grants and Financing Resources
Government grants could be a great funding source for you. The Canada Business Network is a helpful resource you can use to see what’s available. Remember to always make sure, before you apply for any funding especially from the government, that you have a concrete business plan. Without a solid business plan, you can lose credibility. So be prepared.
Not All Funding Options Will Work For You
Not all funding options are for every business. You need to do your homework and make sure that the funding option is a good match for your business. If you find something that’s a good fit – great. But also remember to explore more than one option. If you are applying for a grant, don’t stop there. Source other available funding options. Don’t stick all your eggs to one basket.
Keep Checking What’s Available
New options can come available. Just this month (March 2017) announcements were made about the Launch of the Canadian Growth Business Fund. “The Fund will target investing $1 billion over 10 years… aiming to fill a capital need by offering minority equity investments in ambitious Canadian companies seeking to grow their businesses.”
So stay positive and always keep your eyes and ear pealed.