As we all know, the past year has been quite dramatic for most business and has left many looking for alternatives for extra funds. Finance and budgets have become more stringent in the last months, but there are other options to consider.
Putting aside all the known bank financing options, here are some less-known possible ideas below.
- Research and development grants: Awarded by the government to companies who are innovating. These can be a great option for those that qualify (although the criteria is quite specific) and these grants are non-repayable.
- Crowdfunding: Funds come from the general public and allow for business expansion, but investors get shares in the company in return– This is usually a possible option for small companies with good growth possibilities and plenty of attention. Success will depend on how popular your project becomes on the website, so be loud, and involve your community.
- Business Angels: Similar to crowdfunding, but consists of known wealthy individuals in your network who work on groups. Angel investors can also provide valuable advice and guidance but you must give up some control over your business in return.
Of course, all possible funding paths come with risks to your business’ growth plans. So we advice to stay on top of your cash flow, forecasts and profit margins to succeed. Your accountant can help you build a financial strategy for longer term success.