The average cost of a small business can be anywhere from $2,000 to $5,000 to start up. Running a business can cost a significant amount of money too, depending upon where in the world you are actually running the business from!
Depending on what your services are and whether or not your company is based in your home, you can save you a lot of money.
Unfortunately, we aren’t all in the position to fund this money upfront. Fortunately, there are ways you can get access to funding, even before selling.
Continue reading to discover all of the quick tips and ideas for getting free money to fund your business!
1. Get a Small Business Loan
One of the best ways to get free money quickly is by signing up for a small business association (SBA) loan.
The SBA loans are backed by the government. They work with several lenders who are willing to invest their money and help you out. A small business loan is perfect for when you are just starting. Just keep in mind that you will eventually have to pay the money back plus interest.
Many people also use these loans when purchasing equipment for their business.
2. Community Development Financial Institutions
Areas that are undergoing economic revitalization can get help from community financial institutions
These community development institutions are available to help those who have a business in low-income areas. Common institutions that could fund you consist of banks, credit unions, and venture funds.
The amount of help that you will receive will depend on your location. One area may offer you a lot of support while others don’t offer any.
3. Tax Credit Programs
The New Markets Tax Credit program is meant to help people in low-income areas that don’t have access to investment money.
Most people use these tax credit programs in real estate and when building a business location. Certain investments can offer you a break from taxes and last for a longer period. Unlike loans, this money won’t be granted in large sums.
This is an excellent way to fund your business if you plan.
4. Get a Grant
If you went to college, you may already know what a grant is.
A grant is one of the closest things you can get to free money. There are many types of small business grants that you can apply for to get initial money to grow the business. Grants are recommended because you don’t have to worry about ever repaying them!
No interest, no worries, no problems, with small business grants. As long as you apply and qualify for the grants, you will receive them. There are federal, local, women, and minority grants to look over and more.
5. Enhanced Capital Allowances
If you want to make free money, one of the best ways of doing so is with enhanced capital allowances.
These allowances consist of investments that you can write 100% off on taxes. This means that you could run and maintain your business with free money. Using solar or air energy and changing boiler equipment are a couple of examples of these allowances but there are many more.
Learning about the types of small businesses that are eligible for this government program can be beneficial. Only certain companies are eligible for enhanced capital allowances.
6. Use Crowdfunding
Sometimes one of the best ways to get your business started is with the help of your local community and family.
Crowdfunding doesn’t require much work beyond setting up an account and can lead to a lot of free money. You can ask the community to help support your dreams and goals by donating to your business. Depending on how much information you provide and how you sell it, you could make thousands of dollars.
Depending on where you are starting up your company, you can get free funding through accelerators.
Accelerators are typically more willing to help fund people when they make equity off of them but not all are like this. In Connecticut, there is a reSET Impact Accelerator program that helps get your business going without all of the costs.
Another type of free accelerator can be found in Boston, Massachusets. Accelerators will want to get an understanding of your business and how you plan to make the money back. They can even help coach you along the way.
Did you graduate from a reputable university that offers grants and awards to alumni and students?
You may want to check if this is a possibility for you. Your school may be able to help you start up a company with no costs. Many professors also have connections and can help find investors if the school is unable to provide help.
If you have a breakthrough idea, your university may even provide you with their resources to conduct research.
9. Business Pitch Events
Have you ever watched the show Shark Tank?
This show is an excellent example of what business pitch competitions and events look like. Although they are not as dramatic, they do involve the opportunity to pitch your idea and find an investor.
Depending on how well you sell your product, you could walk out with a fully-funded business and new partner!
10. Join a Research Program
Are you unafraid to join a research program to gain access to money and resources that will help start your business?
Some universities will pay participants money to start their business. Typically you must follow study-specific regulations. You should fully understand what type of research you are participating in, and sometimes it can help improve your career.
Walk Away With Free Money in Your Pocket
Getting free money isn’t always easy but it can be helpful when you are starting up a new business venture.
Utilizing this guide can help you think outside of the box and develop new ways of funding your ideas. Many companies and lenders are willing to work with small business owners to help them reach financial goals.
Don’t be afraid to ask for help along the way from friends, families, and mentors.
Be sure to check out our blog for more articles about starting up a business and being financially stable.