Posted on September 04, 2019 | By Terri Coles | 0 Comments
Finding the right pot of funding can make or break a fledgling business. How do you know which is right for you?
There are a number of federal and provincial government programs that provide would-be entrepreneurs with loans and grants (sorry, you’ll have to do that research for yourself).
CONS: Some programs require EI eligibility. Others are restricted by age, region or industry. And it can be hard to track down the many programs available across multiple departments and governments. A one-stop portal would be helpful (hint, hint).
A bank or credit union is still a good option for many startups.
CONS: Loans must be repaid, and approval can sometimes be difficult.
Put your life savings into your startup? It’s an option, but a risky one.
CONS: You lose your financial buffer, and could lose it all for good if the business fails.
Many businesses are launched with money from family or friends.
CONS: Mixing family and money can be problematic.
Starting your business with plastic doesn’t require applying for new credit.
CONS: Interest rates are high compared to a loan or line of credit.
Startups have successfully raised money through Kickstarter or Indiegogo.
CONS: You might not get the money you want, and you lose a percentage to the platform.
Some of the corporate prizes for entrepreneurs, like the $100,000 Telus Pitch contest, are hefty.
CONS: There are only a few winners for each prize—and the application process can be time-consuming (for potentially no reward).
Angel investors and VCs can be a great source for the cash needed to get a business off the ground.
CONS: A high rate of return is expected, and working with them usually means giving up equity.
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