While there are many ways to have a business financed, startups, especially small businesses are usually faced with difficulty since they are turned down. For this reason, financing a business in New York requires hard work, persistence, and patience.
Although there are several tasks involved to starting a business like incorporating in New York and completing business licensing requirements, looking for sufficient startup capital should not be overlooked. This guide presents a few viable funding options that could jumpstart your business.
Quick Note: By now you should know that when you look for financing options for your business, it is imperative that you can present a solid proof that your business idea can turn into a profitable investment, and a business plan is that solid proof. Planning softwares are great for helping you create that funding-ready business plan.
Before proceeding to the available options for funding a business, learning the basics on how to finance a business in New York is vital so you can make the proper decisions on such a crucial step to building a business. Startup Savant’s How to Finance a Business should give you the information and insights you need.
Compared to other funding options, small business grants in New York pose a greater challenge especially because of its stringent criteria to qualify. However, when you become a grant recipient, you can receive the full capital fund you need without having to worry about paying it back in the future. Grant Star has a list of New York grants currently available.
Aside from being excellent sources of capital funding for a business, startup incubators in New York also offers a wealth of advantages especially if you’re looking to form a tech firm.
The sheer amount of advice and expert counseling you will receive from certified business professionals and mentors when you join an incubator program will be a valuable pool of information you can use to start and operate your business. Krash compiled some New York startup incubators to help you get started.
Raising capital funds through angel investors in New York provides many advantages. Unlike the usual loan where you need to repay with interest, angel investors give you the necessary startup funds.
The beauty about angel investors too is that you can enter into a more flexible agreement with them. Plus, you also get to acquire the knowledge and experience that the angel investors have gained through the years of being an entrepreneur as well.
Unlike capitalists who are hesitant to take risks especially when it comes to startup entrepreneurs, angel investors do not mind risks. Some of the angel investors willing to fund a business is found in this New York Angel List.
Crowdfunding to finance a business has become a very viable alternative to traditional financing options. Aside from getting the capital needed for your startup, you don’t have to pay anything back.
Most entrepreneurs who opt for this option give back little gifts in return for the donated amount, while others give a small equity stake in their business as a token. A crowdfunding platform such as Kickstarter is necessary to present your business idea and the startup capital required for your business.
While it may be challenging to find sufficient startup capital for New York entrepreneurs, the list above should give you an idea on where to look for alternatives to the usual bank loans and credit programs.
Take time to consider each option and the associated risks, and come up with the best decision. As you go along, make sure to know your business inside out to ensure that you can successfully use the startup capital you’ve gained to build a successful startup.
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