Small Business Funding Options and Tips

Securing funding is a crucial step for small businesses looking to start or expand their operations. Fortunately, there are various funding options available to meet the diverse needs of small business owners. In this article, we will explore different funding options and provide tips to help you navigate the process of securing funding for your small business.


Self-Funding and Bootstrapping

Self-funding, also known as bootstrapping, is a common starting point for many small businesses. It involves using personal savings, credit cards, or personal loans to finance the business. While self-funding may require discipline and careful financial planning, it allows you to retain full control over your business and avoid debt obligations. Consider creating a detailed budget and exploring cost-cutting measures to maximize the funds you have available.

Friends and Family

Another funding option is reaching out to friends and family for investment or loans. This approach allows you to leverage your personal network and benefit from individuals who believe in your business idea. When approaching friends and family for funding, it's crucial to maintain professionalism and transparency. Clearly outline the terms of the investment or loan, including repayment schedules and potential risks. Treat the transaction as a business arrangement to preserve personal relationships.

Small Business Loans

Small business loans are a popular funding option that can provide capital for various business needs. Traditional lenders, such as banks or credit unions, offer small business loans with competitive interest rates and flexible repayment terms. Research different lenders and compare their loan products to find the best fit for your business. Prepare a comprehensive business plan, financial statements, and any other required documentation to increase your chances of securing a loan.

Alternative Lenders

In addition to traditional lenders, alternative lenders provide funding options specifically tailored to small businesses. These lenders often have more flexible requirements and faster approval processes. Online lenders, peer-to-peer lending platforms, and microlenders are examples of alternative lending sources. Before working with an alternative lender, carefully review their terms and fees to ensure they align with your business objectives. Be cautious of high-interest rates and consider the overall cost of borrowing.

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Grants and Competitions

Grants and business competitions can be an excellent way to secure non-repayable funding for your small business. Government agencies, nonprofits, and private organizations offer grants specifically targeted to support small businesses in various industries. Research grant opportunities and determine if your business meets the eligibility criteria. Business competitions, on the other hand, offer funding as prizes for winning business proposals or pitches. Participating in these competitions not only provides a chance to secure funding but also offers valuable networking and exposure opportunities.


Crowdfunding has gained popularity as a modern funding option for small businesses. Platforms like Kickstarter, Indiegogo, and GoFundMe allow businesses to showcase their products or ideas and receive financial contributions from a large number of individuals. To successfully crowdfund, create a compelling campaign that resonates with your target audience. Offer unique incentives or rewards for contributors to encourage participation. Leverage social media and digital marketing channels to promote your crowdfunding campaign and reach a wider audience.

Tips for Securing Funding

Regardless of the funding option you choose, there are several tips to increase your chances of securing funding for your small business. Firstly, develop a solid business plan that clearly articulates your goals, strategies, and financial projections. Show potential investors or lenders that you have a comprehensive understanding of your business and its market potential. Secondly, maintain accurate and up-to-date financial records to demonstrate your business's financial health and ability to repay loans or generate returns. Finally, build strong relationships and leverage strategic partnerships. Networking and forming connections with industry peers, mentors, or potential investors can open doors to funding opportunities and valuable advice.

Securing funding is a critical step for small business' success. Whether through self-funding, loans, grants, crowdfunding, or other options, small business owners have a range of choices to meet their financial needs. Carefully consider the pros and cons of each funding option, and select the one that aligns with your business goals and financial situation. Remember to prepare thorough documentation, maintain professionalism, and explore all available resources and support networks. With the right funding and financial planning, your small business can thrive and achieve its growth objectives.


  • Jonathan Bomser

    Writing for Touchsuite, Jonathan Bomser, is a technology and marketing expert with over 30 years of industry experience. He is a businessman, writer, artist and musician. He has vast knowledge of finance, business and technology. Jonathan is currently founding, investing and board advising in several early stage and start up companies. Jonathan has been involved in Technology, Media, Marketing and Advertising for a multitude of Fortune 500 companies for over 30 years.He has served as a strategic, creative and marketing executive and consultant for both parent companies and subsidiaries at AOL, The National Football League, The Walt Disney Company, NBC, MTV, Viacom, Time Warner, USA Today, Alliance Entertainment, WPP, Penguin USA, along with numerous other established companies, start-up ventures and reorganizations.Jonathan was the CEO and Founder of BigLinker.com, which was acquired by Ziff Davis (Nasdaq: ZD) in 2021, CEO and Founder of TownTarget.com from 2013-2015 which was acquired by Touchsuite/American Bancard in 2015 and previously Bomser Payan Interactive Agency from 2008-2012 which was acquired by Big Step Interactive/Digital Marketing Associates. Jonathan was the key developer for the technology used to power many of their successful digital campaigns. Clients included national brands such as Adidas, PNC Bank, Massage Envy, European Wax Center and others.Jonathan has also helped manage the technology initiatives, creative strategies and business development for AIM Pages.com, AOL’s Social Network. Since May 2006, Jonathan has also been consulting for technology, marketing, sales and creative strategies for Veoh.com, BigString.com, Vuguru.com and others. Before consulting for these major companies, Jonathan was a principal in En Pea Productions,Inc. which was a television production company focused on reality television, commercials and music videos. Jonathan is also the former Board Member, CEO and President of WoozyFly.Inc. Trading on under the symbol WZFY.Jonathan's current projects at AccountSend.com, VocalChimp.com and CoolValidator.com

    Touchsuite is located in Boca Raton, FL and is a payment processing and point of sale company that specializes in merchant accounts, point of sale systems, Grubbrr self-ordering kiosks.