If you are just starting a small business in Canada, or have one and are looking to expand, or keep it alive, then you must begin to research funding. There can be such a stigma sometimes, especially in Canada, around asking people for money, but when becoming an entrepreneur it is integral to your overall success.
This is because when you are starting out, you have to understand that you won’t turn a profit for the first few years because all of the money you gain with go straight back into the company. As well, you need to have a lot of capital starting out which is why funding is so crucial in the small business world.
Today we will be walking you through five funding sources that you should start considering when building a small business in Canada.
Standard Bank Loan
This one is pretty self-explanatory and the reason it is included first is it is the common way most people fund their small business. Banks, of course, hold the most money in all of Canada and are always eager to loan money to someone or something that has a great plan for success.
This removes any stress from an entrepreneur who doesn’t want to go door to door or ask for private donations, as you can get one lump sum. The only reason some people stay away from this funding is because with it, comes added expenses in the term of interest.
Always remember that this is a loan, and must be paid back in full down the line.
Within this era of technology, there are fantastic ways to fund online. This is why Crowdfunding is such an important source to think about. For this funding, you need to have high quality videos that basically sell your company and why you need the money. You have the potential to gather millions from people all around the world that don’t even know you.
This one seems to be the toughest for most entrepreneurs because it involves going in person and basically asking people for money. Whether it is friends or family, this can be crucial funding source that you will have to take advantage of.
The Government of Canada
This one often gets overlooked but is one of the best funding sources. The government of Canada wants small businesses to succeed more than anything as it helps build our economy and creates jobs. Canada has a lot of grants available and resources for you.
The last funding source is YOU. You have to invest money yourself, even some of your assets in order to build your business.
Funding is integral to your success and finding the right funding can be difficult. At Canada StartUps, we have a funding database that features over 1500 sources of funding from across Canada. It will definitely be an added resource for your small business that helps you narrow down your search.
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