Having trouble raising funds for your small business? When you do decide to start your own enterprise, it’s important to have an idea of how they will be raised, so you can plan accordingly. In this article, we look at some ideas that you can use to get finance for your fledgling business. After all, if you run a brick-and-mortar store, chances are that customers don’t always come knocking on your doors. Therefore, building a reliable customer base is vital to growing your bottom line, so if you need business funds, there’s no reason to keep them waiting.

1. Crowdfunding platforms

Some entrepreneurs are able to raise funding by crowdlending a certain amount as grants in exchange for pledges to contribute towards the business’ running costs. For example, Amazon has recently started accepting financial donations via crowdfunding campaigns. Other businesses can also build a website with the help of free tools such as Wix or Shopify, allowing users to donate without worrying about the cost of running the site. As long as you don’t create an overly complicated system, you should be fine to get finances for your new venture.

2. Referral offers

When a friend or family member hands over part of their monthly salary to fund the business, these types of arrangements are known as referral offers. This type of arrangement works well because your friends already know someone who needs money, and you don’t need to convince them. However, if you want to avoid paying another person, consider establishing a similar program within a different industry and area. If people trust others within the same niche and have personal experience working with a particular company, then those companies have built a name for themselves by helping other people make good use of that service. Furthermore, when it comes to generating additional revenue, referrals work best than direct marketing. You may run into a situation where one of your existing clients wants you to add a loyalty program to their website. They might offer various benefits, including perks, discounts, or promotions. The idea here is to encourage repeat purchases, thus increasing the likelihood of getting more clients in return.

3. Loan sharks

If the problem is too much, then just ask some big-time lenders like Wells Fargo or Goldman Sachs to give you some extra breathing room for your fledgling business. By pitching these institutions, you can secure financing for your new venture. One major advantage of banks offering low interest loans is that they cannot charge anything upfront, making the deal easier to complete. On top of lowering the risk of failure, lending institutions are typically eager to see what type of collateral you need for financing, meaning that there won’t be any surprises later down the road. Lastly, many loan sharks are willing to lend you up to 10 times your annual income, but not beyond that, which gives you plenty of wiggle room to take on larger projects.

4. Venture capitalists

As noted earlier, investing in yourself and your future isn’t cheap. To find Investors who are ready and willing to invest in your new business, seek out Angel Investors. Angel investors are individuals who are motivated to back companies with high potential, and usually only pay a certain percentage of total shares for each round. Aside from saving time and money on recruitment, angel investors provide valuable insight into market trends and technology advancements. Even before launching your new product/service, you can learn what makes consumers tick and what challenges their current and prospective customers face. Another way to search for investors is to browse through LinkedIn groups. Most groups allow applicants to meet regularly and speak directly with experts in a given field. Whether you invest through conventional methods or crowdsourcing fundraising, make sure to keep track of the progress of your startup to identify areas that need improvement. Then, present your pitch to relevant members of the group and let the process play out naturally.

5. Bankruptcy court judgments

If it seems like your business idea doesn’t really qualify as something worth pursuing, then bankruptcy courts will hear your case. Although this option is often considered an absolute no-no for inexperienced entrepreneurs, even seasoned professionals can benefit from being tested in this manner. Since bankruptcy is more of a last resort, most courts will not entertain appeals by owners who didn’t receive a final judgment. Fortunately, there are several organizations dedicated to assisting startups, often called incubators. While these spaces are somewhat competitive because of their geographic location, you can be assured that competent lawyers can handle every aspect of creating a successful case. Moreover, if you do wind up appealing a judge’s decision, you will have proof your case was thoroughly litigated and argued. Once again, make sure your legal team handles everything flawlessly, from drafting the brief to filing motions on appeal. Additionally, if the judge rejects the motion without providing reasons, it means they are afraid to let you get away with illegal behavior such as fraud and extortion.

There is never going to be enough money in the world for everyone, and having enough money to cover your debt obligations shouldn’t be overlooked either. With little to no equity in place, you can’t expect creditors to wait around patiently for repayment. To improve your odds of success, look into options such as private equity deals in order to raise additional cash from individuals who wish to bring capital into your project. Private equity investments vary in terms of whether they are backed by bonds, stocks, real estate, or other assets in the form of preferred stock or common shares. Depending on the nature of your operation, it might be possible to acquire “preferred equity” from private investment groups. Conversely, you can also look to crowdfunding platforms or government agencies that are looking to purchase “preferred stock”. Make sure you approach these entities responsibly and in accordance with your local regulations to ensure that you can obtain optimal returns from your investment. Finally, if you run a physical shop or hire employees, you may be able to leverage the value of your property by securing tenants as an asset that can be sold on after the lease ends and you receive enough equity in relation to your debts.