Funding a startup is one of the biggest challenges in running a business. When you first start, you will notice that you have been investing a lot of capital to make it grow but there is a limit to the same. There are endless ways to find funding for your business and the opportunities are endless. For a startup, bootstrapping is a worthwhile step. It can limit the scope of your business but it will also help you build your business and allow you to be really creative without having to respond to the demand of outside investors. The trick to bootstrapping is to find the right resources that will allow you to do so for as long as possible. Listed below are some of the best resources for startups to raise funds:
Apply to equity funding programs: If you are savvy, you can easily find the equity free funding programs. These programs include incubators, accelerators and business plan competitions. They are designed for founders that are just starting out. The competitions are useful since they help you learn how to write business plans and to design financial models. There are various websites where you can find the equity free funding programs and support around the world. You need to do a bit of digging to find which programs will fit your needs.â€‹
Be a part of the niche founder groups: A variety of sites compile opportunities that are directed at minority founders. Whether it is the websites that offer resources for female founders or communities of color, the sites are helpful since they allow narrow down opportunities specific to a cofounder.
Create a crowd funding campaign: Crowd funding requires a lot of time, energy and community building in order to run successful campaigns. Some companies spend almost a year building a following before they launch a campaign. There are some platforms that help mitigate the issues. You can be a part of the community which is genuinely interested in helping their peers succeed. Such communities help the founders create high quality videos for their campaigns. It is a great resource for founders that are just getting started and need guidance in the process.â€‹
Apply for relevant grants: Although applying for grants can be a tough process, they can be useful for certain types of companies. Grants are a great option for people who are looking to solve community based issues. Whether it is something related to community development or agriculture, grants are ultimately geared towards helping the society. Looking for grants may take a while but it could open up new funding sources that you might not have considered earlier.
Although this is not an exhaustive list, these are considered to be the most reliable sources for founders who are focused on bootstrapping. The next time you are short on cash and are looking for new ways to fund your business, you might find options you hadn’t considered before.