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Every business needs an idea to get started. But, an idea can get you so far in business and in life. What you need is money and a lot of it. Unfortunately, startups and small businesses don’t usually start out with a lot of money. So what can they do? Raise the money of course! Below are going to be the five best ways to raise money for your startup.


Crowdfunding is a popular form of raising money. You have probably seen the ads for raising money for businesses and their ideas online. This can be done from crowdsourcing websites like GoFundMe.

This is a great way to fund your business because you don’t have to give away any equity. All you have to do is find the website you want to crowdfund from, then create your pitch and share your business model. If people like it, then they will donate. However, this can be a long process if people are not interested or not seeing it.

Friends and Family

Sometimes one can rely on friends as well as family to provide them with money. Perhaps someone in your friend group or a relative has knowledge in the business world. It would be a good idea to go to them for any assistance needed.

But, getting money from the people you know can lead to unforeseen consequences. Money can put a strain on relationships. So, if you are taking their money and not delivering on your promise, you will have a bad time. Plus, you will have a failed business and have lost friends or angry family members.

Make sure that what you are doing is going to work and prove to them that you are not going to fleece them.


Investors are a great and safe bet to get money for your startup. There are many kinds of investors from strategic partners to venture capitalists. You need to know how they operate so that you can make sure that you aren’t being swindled out of your company.

To impress them, write out your business proposal along with forecasted profits, business message, and what the company is all about. Seeing that you are serious about the startup relieves stress on them.

Getting them to notice you can be a daunting task. Honestly, the easiest thing you can do is get an investor-wanted ad in some sort of business publication. Learn marketing and what your personal brand is to attract investors. Soon, they will be coming to you.

Bank Loans

Now, if you have a solid idea and a great business plan to boot, great! You are almost there. To raise money for your startup, go to the bank. Your local bank may be interested in giving you a loan.

Hopefully, you have a good relationship with your local bank. If you are someone who is not good about paying back, then the bank will be less likely to give you a loan. Prove that you are capable of the enormous task at hand.

Share Risk

If your business already has some employees, then you are already in the right direction. However, money being the lifeblood of the company requires you to find creative ways to make your cash. Consider selling your equity to your employees overpaying them a salary.

You can give them risk by offering them their salary as well as equity benefits that will be paid out later on. Sure the company will start to have multiple owners and sayers to it, but at least it is not going under!


There are a lot of ways to raise money for a startup business. Besides the ones above, there are multiple avenues to choose from. While this sounds daunting, you coo need to step up to the challenge. If you care about your dream then you will do whatever you can do to keep the business floating.

Everything from saving your money, and trying not to spend money, to investors and bank loans, there is a chance for you. But, like everyone else, you have the chance to fail as well.

Being smart with your money is what is going to get you far in your business career. But, that does not mean cutting corners on things. That leads to sloppiness and it shows that you are interested in profit, not seeing your business be successful. Spending that money wisely is how you are seen in the Forbes 40 Under 40 or on the cover of the latest business magazine.

As long as you keep true to your values and understand the responsibility on your shoulders, your startup will become a success in no time.

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