The most popular funding options for your business
When it comes to obtaining funds for a business venture, there are plenty of options available— worldwide. Depending on your location and the type of company you wish to start, you may discover that one investment for you is better than another. However, it’s still nice to know that there are choices . . . and lots of them!
In fact, you may have to actually pursue one type of funding before you determine that it doesn’t quite fir you and your needs. A little trial and error never hurt anyone. At the end of the day, just remember to do your research and find the best avenue for your particular business.
Brought to us by our sister brand Business Review Canada, angel investing is currently quite popular throughout Canada. Specifically, the Northern Ontario Angels have been named the top angel investment group in the country by the National Angel Capital Organization. Originally reported by CBC News, this data comes from a survey that was conducted last year.
Speaking for the Northern Ontario Angels, executive director Mary Long-Irwin believes that the group has done well due to the fact that investors in the region feel it’s their duty to reach out to others.
“They understand and they believe that it’s their responsibility to help grow the north and help support the north, where they made the money.”
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Interestingly enough, it’s been noted that the majority of investment deals have been made in the technology and manufacturing sectors—indicating that these fields are doing well in Canada.
However, while angel investing is big in Canada, what about other regions of the world. For example, what are some different and popular funding options for the United States?
You’re most likely familiar with this term, having heard of the different options that include Kickstarter, Go Fund Me and Indiegogo. These selections are rather easy to access and allow for many different types of donations. In fact, anyone who is interested in contributing, despite how much he or she can actually give, will be allowed to donate. Due to the fact that the opportunity to have more investors is present, crowdfunding is quite big in the United States.
Grants and loans from the United States are still available—even if some opt to steer clear of this option. However, it’s still vital to remember that this specific type of funding can be accessed and utilized. Of course, grants are more sought after because that money doesn’t have to be paid back. The only downside is that grants can often be hard to obtain; you really need to have a specific niche and then find particular programs that support that niche. And we all know the downside of loans: they have to be paid back with interest.
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Personal savings account
Who better to support your business than you? If you’re disciplined and are good about saving money, then you may be able to simply rely on yourself to get your new company started. Of course, you do run the risk of sinking everything into your company and then losing everything—but if you’re passionate enough about this dream and you believe in this business, then you just may need to take such a risk. After all, if you don’t whole heartedly believe in your company, how do you expect to get someone else to?
Of course, these are just a handful of options that are available. With a little bit of research, you may discover that there is an even better choice out there for you and your new business. Regardless, make sure to practice due diligence and decide on a type of funding that is going to help you reach success.
[SOURCE: CBC News]
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