Well over half a million new startups launch in the United States annually. Few of them succeed but those that do have the potential to rake in incredible riches.
That prospect has inspired many to dive into the startup game.
Launching a healthcare startup business is unlike anything most people have ever experienced in their professional lives. It takes ingenuity, patience, and a thick skin. It also takes money which is the purpose of this post.
If you’re unsure of how to get funding for startup businesses, keep reading. Below, we outline four common avenues most healthcare startups will go down to get their companies off the ground.
The most tried and true way to get money to start any business is by talking to a bank. Banks are in the business of giving out loans so they have a vested interest in helping companies that need to borrow cash.
The catch is that banks and credit unions don’t want to lose their money on a bad venture so you’ll have to be prepared to describe to these lenders how you’ll use borrowed funds to put their minds at ease.
You might also opt to ditch traditional brick-and-mortar banks and instead go with online lenders. This option enables you to access more potential loan offers but could lead to run-ins with shark-like lenders that you’d do well not to engage with.
Want to ditch banks altogether while exploring how to get funding for startup businesses? Try crowdfunding!
Crowdfunding is the process of having multiple individuals fund your business loan through online platforms.
Most means of crowdfunding will require you to have decent credit and other tells associated with being a financially responsible individual.
Your Retirement Account
While we’d never tell you that emptying your retirement to start a healthcare business is a good idea, it’s certainly an option. Do you think you’re likely to earn more per year with your retirement money invested in your business versus it being invested in the stock market?
If you answered yes to the question, consider withdrawing. Just know that in most cases, early retirement withdrawals will cost you penalties.
We’ve all seen movies where tech startups head to large firms, pitch their ideas, and walk out with millions of dollars in capital. That process of pitching big-wig investors is very much real and may be worth exploring if you feel your company has the market potential to generate a significant amount of money.
There are lists of Angel investors out there you might consider exploring.
You Now Know How to Get Funding for Startup Companies
You clicked onto this post hoping to learn how to get funding for startup companies. You’re now aware of four viable pathways!
Remember, a pathway to your dreams is only as good as your ability to walk down it. We hope you find the courage you need to find your funding and get your company off the ground.
Should you need additional guidance, consider reading more of the content on our blog!