Vector image of two hands reaching upward to catch a dollar sign. Represents entrepreneurs and small business owners getting funding.

How to Get Funding for Your Business

Kody Wirth | Jul 12, 2023

Most healthy businesses will need funding or financing at some point. Whether it’s to cover startup costs, help with major equipment purchases, or fuel growth with additional capital—it’s a common and often necessary step.

The reality is, that like so many things in business, your path to funding fully depends on the state of your business. Its age, position, performance, market opportunities, team, etc. will inform your funding search and how you’ll prepare to get it. 

Now, that may sound daunting and overwhelming but don’t worry because in this guide we’ll be teaching you how to prepare for funding and improve your chances of getting it.

5 steps to get your business ready for funding

While your funding journey will be unique to you there are some key steps that you should take to prepare for whatever funding option you choose.  

How to improve your chances of getting funding

Following the five steps we laid out, unfortunately, doesn’t guarantee that you’ll get funding. There are just too many variables that can swing your chances in a positive or negative direction. However, we do have some additional tips and resources that may help improve your chances.

Small business funding and pitching templates

Free resources to help you complete the steps required to prepare your business for funding.

How to get funding FAQ

While the path to funding is different for every small business there are five key steps you should take to get there. 1. Determine if you need funding 2. Calculate how much funding you need 3. Research small business funding options 4. Write or update your business plan 5. Prepare to pitch to investors

The process to get funding for an existing business is similar to funding when starting. The key difference is that you are more established. If you have historic financial statements that display steady growth and a forward-looking financial forecast that shows how you’ll use the funding to further this growth—you can improve your chances of getting funding.

Most small businesses are funded through some combination of bootstrapping, friends and family financing, and small business loans.

How difficult it is to get funding depends on a number of factors based on your business and the risk appetite of the lender or investor. Typically poor financial performance, a lack of organization and planning, or the size of your business can make an impact.