Smart and Practical Ways to Fund your Business: It’s Not as Difficult as You Think

There are Smart and practical ways to fund your business and it’s not as difficult as you think. All you need is the right formula. Starting a debt-free business is a good position to be in for entrepreneurs. However, not all businesses operate debt-free. It pays to have a good understanding of your operational cost. Oftentimes business owners would resort to lean on credit until such a time where the business can already the operations. It is best to plan every step carefully as you go through your business. It is safe to say that starting a business through credit is not a good business formula.

Successful Chinese businessmen do not believe in getting a loan to start their business. They started small and made it grow. They are frugal and disciplined in managing their money. However, they do not deprive themselves of a holiday vacation once a year.

Let me share a story.

There was a boy who was born to a wealthy Chinese family. They were all provided until an unfortunate event took place. His father died, leaving nothing to the family. Not even their house. His family had to move to the Philippines and start a new life. At a young age, he started out as selling vegetables in the wet market with only $0.39 revenue per day. He used that daily revenue to invest even more. He bought more vegetables he could sell until his revenue increased. As it increased, he strategized on ways to earn bigger. He looks for a location with less competition but higher demand. So he took a risk of selling vegetables a few kilometers away from the market. And that was the beginning of his success.

Fast forward to 2019, that boy already owned major companies in Asia. Airlines, Telecommunications, Banks, and would you believe, from $0.39 revenue, he now owns a Supermarket? That boy is now one of the business tycoons in Asia, he is John Gokongwei Jr. Now you know that Robsinson’s Supermarket story started with $0.39 revenue. His business journey proves that there is no limit to finding Smart and Practical Ways to Fund your Business. May his journey inspires you even more.

Do your research and Start Planning

The major factors that contribute to a successful business are research and business planning. Having a detailed business plan is essential in going about your business. It serves as a roadmap in handling your funds, savings, and investments.

Smart and Practical Ways to Secure Funds for Your Business: It's Not as Difficult as You Think
Smart and Practical Ways to Fund your Business: It’s Not as Difficult as You Think | Image Credit: rawpixel from Pixabay

In the Investing vs Saving Episode of the Journey of Entrepreneurship Podcast, Richard Phipps shares that sometimes potential businessmen started a business through “emotional decision” with no thorough research and thought out plan. Thus, it would be very challenging for them to secure funds as banks would always look at the documentation of the business and business plan to assure them that the business operation could pay up their loans. Simply said if you have a good and well-researched business plan and the right mindset of taking responsibility, it would serve as your backbone on finding smart and practical ways to fund your business and it is really not as difficult as you imagined.  

There are various ways to source out funds for the business, however, bear in mind that starting a business entails a huge risk, it could either make your business successful or it could fail you. But the important thing in this process is to always have a goal in mind and ensure you have Plan A, B, C, and D for that matter. 


If you could start your company without having to loan or borrow from others that would be an ideal recipe for business. This means you have to finance your business through your savings or funds you have allotted for the business. Richard Phipps and Rosler Oriol, in the Financing and Budgeting episode of the Journey of Entrepreneurship, discussed that if one has started a business, he or she must keep his or her regular job while funding the business. This is important as since the business is still in the early stage there could be a lot of generated expenses as one goes about establishing and sustaining the business. In starting and managing the business it is essential to always mind the cash flow of your business. Rampver CEO and Book Author, Rex Mendoza, mentioned in one of the conferences in the Philippines, that a person ideally needs “7 multiple income streams to thrive.” If we consider this statement, our business is just one source of income. However, making the business flourish would be based on the kind of business planning and strategy you have prepared. 

You better have enough savings and assets to fund your business, thus, it is important to keep your work until your business becomes stable and can fund itself.

Family, Friends, and Relatives.

Pitching your business to your family, friends, relatives, is an option to fund your business. Although you need to take extra consideration as trust and future relationship is at stake here. These are people who would be willing to lend or fund your business all because they support you but you also need to make sure they get back what they have invested to support you. A good business plan along with your pitch would be ideal. Their support could help you get your business rolling.

Angel Investors

Sometimes, bootstrapping your business is not enough, and even if you do a full-time hustle at work and do business on the side, it could not be enough to fund your business as a startup. Angel Investors could be another option to consider. Angel Investors are those individuals who have a high net worth and are willing to invest in a startup business with the intention of helping the business get rolling. Normally, they would invest in a business in exchange for ownership equity or convertible debt. These angel investors could also come from your friends, family, and established business professionals.

Business Loans

Business loans have been very common for starting a business although, the downside of this is usually they need additional documents for security purposes. You may also need to present documents and proof that your company is already starting to gain and making money. 

For startup companies with no track record yet, who wish to consider bank loans, having a good business plan coupled with profitable projections and personal net worth can help you out.  


Lastly, crowdfunding. This has become common nowadays, to raise money not only for startups but even for personal funding. There are already a lot of websites who serve as channels for crowdfunders who aim to raise money for their advocacies, creative pursuits, and business models. There are different types of crowdfunding, for the purpose of business funding, you would be more likely to focus on rewards-based funding or equity crowdfunding.

  • Rewards-based funding. This type of crowdfunding allows individuals to contribute to your business in exchange for a reward usually in the form of products or services that your company offers.
  • Equity crowdfunding. This type of crowdfunding allows your contributors to receive a financial return on their investments. It allows them to become part-owner of your company.

If you are looking for crowdfunding platforms for your campaigns these are our recommended websites:

  • Kickstarter. This seems to be the largest crowdfunding platform so far. A lot of Entrepreneurs and investors use this platform for their fund campaigns to fund their projects. A lot of creative individuals, such as filmmakers used this platform to fund their film projects. 
  • Indiegogo. This platform is just like Kickstarter which can be a venue to solicit funds for charity, an idea, or a startup business. However, unlike Kickstarter, Indiegogo does not require to use an all or nothing campaign, in which, if the fundraiser did not reach their goal, they wouldn’t get funded. Furthermore, Indiegogo has an option where you can opt to start fundraising without an end date.

To sum it all up, there are a lot of opportunities for you to start and fund your business, but the goal is to make a standalone business. Perhaps we need to ask these questions. Can our business fund for itself? Do we have research to back up the feasibility of the business? Do we have a 3-year business plan at least?

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