You’ve dreamed and imagined your outdoor startup idea. You have your strategy and plan all figured out and you’re ready to jump in and get started. There’s only one thing holding you back from getting your outdoor startup off the ground - money.
Getting your outdoor startup going isn’t easy. It requires many things, and those things require a lot of capital. You know there are options out there for getting the funds you need, however, because there are so many, you don’t really know where to start.
While there are traditional small business loans, they are often difficult for startups to obtain. One-fifth of startups don’t even make it past the first-year mark, making it an understandably risky investment. This risk is one of the main reasons that lenders tend to avoid lending to startups.
For most startups, getting a bank loan or a line of credit through a bank is unlikely. If you haven’t established yourself and proven that you can make a profit, many lenders will turn you down.
The good news is, there are non-traditional funding options and loans that you can get for your startup. These loans are a great way to start your business, build up your credibility, and prove that your business is viable and will be profitable.
What are the Different Types of Startup Funding?
Instead of wasting your time trying to get a traditional loan, put your efforts towards the other options out there. When you secure funding for your outdoor startup, you’ll be ready to get your business going. Take a look at the different types of funding you can get for your startup:
Microloans are small loan amounts with the sole purpose of helping a business get started. They are typically through non-profit organizations devoted to building the economy. There are many microloans available, each with its own maximum amount. The SBA even offers a government-backed microloan that goes up to $50,000.
Business Credit Cards
Business credit cards are a simple form of credit that you can get for your startup. They can be used as startup capital, showing up as a revolving form of credit that can be used to make purchases, they can be paid off, and then can be used again. If you can get a business credit card with a high limit, you’ll have simple, consistent, startup funding.
Sending an invoice to your clients is actually a great way to get startup funding. Invoice financing is a loan option that allows you to borrow money by using your invoices as collateral. With these loans, most borrowers can get 80 to 90 percent of the invoice loaned to them. Once the client pays the invoice, the borrower repays the loan, plus fees.
If you have decent credit, applying for an unsecured personal loan may be a great option. Terms of personal loans typically range from two to seven years. These loans will give you the startup funds you need to get your business off the ground.
Any personal savings is a great way to get the funds for your business. While it may seem frightening, if you’re going to get your business off the ground, you may need to have a little skin in the game.
Crowdfunding websites are a great way to get your startup funding. When using a crowdfunding site, you will share your idea with your audience and get them to donate money for your business idea. Crowdfunding campaigns should have rewards and other benefits for your donors, encouraging them to take the leap and donate.
Find investors who believe in your business idea and are ready to back it with their money. With investors, you can slow down and build the business you’ve been dreaming of with funding from people who believe in you.
Launching Your Outdoor Startup
While you’re working to secure funding and everything else that goes into launching a startup, you’ll also need to decide where that startup should be located. Consider Farmington! With a plethora of natural amenities and iconic landscapes, coupled with ideal four-season weather, it is a fantastic place to launch a new outdoor venture. We think of Farmington as both Nature’s Playground and Nature’s Proving Ground—a place not only to enjoy the outdoors but also to build and test many types of outdoor gear and accessories. Learn more about bringing your outdoor business to Farmington here.