Business Funding Guide

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.  

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1. Determine if you really need funding

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You need to ask yourself one simple question. “Am I ready to take on funding?” To answer that question you need to consider why you need funding, how you’ll manage it, and what you’ll do without it.

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2. Find out how much funding you should raise

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Lenders and investors will want to know how much funding you’re asking for. You need to be sure that the number you land on is not too little, not too much, and that it aligns with your current strategy.

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3. Consider your funding options

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There are numerous funding and financing options available to small businesses and entrepreneurs. You need to carefully consider what funding method serves your business best and what it will take to get it.

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4. Write your business plan

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You need a business plan to get funding. Most lenders will require it and investors will want to see your plan in order to quickly assess the state of your business. Check out our step-by-step guide to get started.

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5. Create your pitch

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There will come a time when you need to convince someone to fund your business. To do so, you need to have a tight elevator pitch and a captivating pitch deck to back it up. Luckily, we have plenty of resources to help y…

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What if you’re a nonprofit?

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While the steps outlined above are applicable to nonprofit organizations, there are unique considerations you’ll need to account for to successfully raise funds.

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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.

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9 tips to help you land funding

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Learn how to make your business stand out and be more attractive to investors with these funding tips from seasoned entrepreneur and angel investor Tim Berry.

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Avoid these 9 funding mistakes

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It’s just as valuable to know what not to do when pursuing funding. Be sure to avoid these common mistakes based on actual real-world insights from successful business owners.

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Understand these common funding challenges

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Getting funding is a difficult and complicated process. But if you are aware of what specific challenges are ahead you can better prepare yourself and your business to overcome them.

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Small business funding and pitching templates

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

Slide Deck Template

Investor pitch deck template

Impress investors and loan officers alike with visuals to back up your elevator pitch.

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Maximize your chances of securing funding with LivePlan

Create and share your investor-ready plan, pitch, and financial forecasts with a single powerful tool.

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Doc Template

Free business plan template

Showcase your business structure, performance, and potential with an investor-ready and SBA-approved business plan.

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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.