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How to Raise Money to Start a New Business

How to Raise Money to Start a Business

Posted on: Sep 14, 2018 5 min read

In 2018, being an entrepreneur has become a trend that a lot of millennials and adults as a whole want to adopt. The idea of working for yourself and working around your own schedule seems ideal, therefore, due to high demand, in this article, we will show you 3 fantastic ways on how you can raise enough money to start your very own business.


In 2009, a very popular platform called Kickstarter was launched where aspiring entrepreneurs found the financial backing of many online investors and potential consumers that liked the idea. There were businesses that failed dramatically, however, there also were multi-million dollar companies built on the back-end of Kickstarter.

You don’t need to have the best or the smartest idea, all you need to do is present your idea and explain how you are solving a problem(if that is the case with your business). People need to see the real benefit of your business to their life, even if it is in theory.


Simple ideas that solve major problems are often found to be the winners in the crowdfunding game.

By 2025, it is estimated that over $93 billion will be invested in crowdfunding ideas. Why not take your idea into play and show the world why you deserve a start-up capital?


It’s never easy to be successful. Especially when you are directly competing with tens of thousands of brainy entrepreneurs.

Crowdfunding exposes your idea in front of millions, meaning that someone that has the resources or is better than you, can easily steal the idea and get ahead of you and steal what you were planning on achieving.

Grants and Loans the Traditional Way:

Grants and loans from businesses, charities and banks are a great way of starting out, however, they are quite hard to get your hands on due to the competition and the thousands of people fighting for the resources that you need.

One of the best ways to stand out is to be original, simple and be a fantastic communicator that can confidently present an idea and persuade people into it. It’s that simple, however, it is a skill that many severely lack.


Loans from banks are a solid and long-term form of financing for your new start-up. Many people in the business world consider debt as an asset instead of a liability as it helps them grow and improve their organisation’s credit score if they pay their debt on time.


Getting a loan or a grant can be a difficult thing to pull off as you either need to have a fantastic idea that shocks the decision makers, or have some sort of a financial backing that can guarantee that you can pay off your loan if things don’t work out.

The Bank of Family and Friends:

Using money from your family and friends is one of the easiest ways of funding your new business depending on your circumstances and the wealth status of the people that you know.

In today’s market, we have seen many businesses start-up from the 0 or with funding from relatives. While some do manage to succeed, others fail miserably, and most likely need to explain themselves afterward.


People that know you are more willing to invest in your ideas and can give you advice if they are experienced in your field.


There is no guarantee of investment and can make things awkward if your business fails or doesn’t go in the direction that you have proposed.


In such a digital space, it is important to remember that many people have started their businesses with literally $0 to their name and have made it big. You don’t necessarily need a big chunk of money to start and create something great, especially if you are planning on opening a business within the service sector.

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