A business cannot fully take off if it does not have sufficient capital funding to get started. Although it is a given that there are many things on your plate when starting a business, from incorporating in Michigan to processing business licensing requirements, taking care of possible options for financing a business in Michigan should be on your priority list.
Although startup entrepreneurs are at a slight disadvantage due to the fact that they are usually turned down when they apply for bank loans, there are other viable options for financing you can consider.
From angel investors, startup incubators, to crowdfunding platforms, below is a list of the options you can consider.
Quick Note: By now you should know that when you look for financing options for your business, it is imperative that you can present solid proof that your business idea can turn into a profitable investment, and a business plan is that solid proof. A business planning software is a solid tool to help you create that funding-ready business plan to get you that much-needed funding.
Before you take that first step towards finding the required capital funding for your business, you can learn from this Startup Savant guide on how to finance a business in Michigan. This guide will start you with the basics and tips on how to obtain the right funding and present you with ten common options for consideration.
Another alternative to bank financing loans is small business grants in Michigan. Small business grants are usually state funded in partnership with private organizations, and a majority of these grants are made available through the assistance of the US Small Business Administration.
These grants are available for women, minorities, and even veterans who are looking to have their startups financed. A list of available grants are available on Grant Star, and you can apply for these grants provided you meet the set criteria stipulated.
Startup incubators in Michigan have also grown in number over the last few years because of the increasing needs of small businesses. Although not directly a financial option, a startup incubator can help you connect with possible investors to which you can pitch a business idea and find prospective financing.
Startup incubators are companies that help develop startups and small businesses get on their feet at the startup process through a variety of services. These include management training, co-working spaces, one-on-one counseling, training and workshops, business events, and opportunities for networking. You can start finding a startup incubator in Michigan through Grow Detroit.
Angel investors in Michigan are a good alternative to the good ol’ bank financing and loans. Angel investors are private individuals, usually established entrepreneurs who are looking for startup ideas that can turn into a viable business.
These angel investors are not only after the return on investment they can get from investing in a startup, but they are really bent on helping new entrepreneurs get started. A list of angel investors in Michigan is found on the AngelList, so you can head over to check if this option may suit your business needs.
Crowdfunding to finance a business may be a relatively new information, but it is one effective method of raising the funding capital needed for your startup.
In order to get started with this option, you need a crowdfunding platform on which you can present a business idea and the exact amount of capital fund you need to start a business. From there, you wait for the crowd to take up your proposition. For more details on crowdfunding to finance a business, you can check CrowdfundingMI.
Financing a business is quite a delicate process, but at the top of it all, your primary consideration should be your business’ requirements. When you’ve determined what you need, then take the time to make an informed decision on choosing the right financing.
To jumpstart the process of funding a business in Michigan, you need to write a winning business plan. To write a business plan, you can take advantage of LivePlan, which walks you through the entire process.
If you do, a significant percentage of the commission we receive from LivePlan will be donated to our aid for children’s education with the help of DonorsChoose.org. We do this without any additional costs on your end.