Finding the right type of funding for your business often takes time. You need to research your options, see what kinds of loans you’re eligible for, and evaluate the best step for your business. For some people, these considerations lead them to private business funding.

If you’ve decided private funding is the right path for your business, then the next step is to figure out how to secure it. That’s precisely what we’ll teach you in this blog!

1. Determine How Much Funding You Need

The very first step is to figure out how much you’re asking for. Private investors don’t often have the same access to capital as banks or traditional lenders, so you might be more limited in how much you can borrow. Calculate what you need to get off the ground or take your next steps and find a lender whose offer is within that range.

2. Solidify Your Business Plan

You’ll need to pitch your brand and growth ideas to a potential investor, so it’s wise to solidify your business plan beforehand. Be sure to think through all aspects equally, including the products or services, marketing plan, finances, sales goals, and more. The more detailed your plan, the better investors can see how and when they’ll get a return on their investment.

3. Consider Your Options

Now that you know exactly where you’re going and what you need to get there, you can start thinking about what your options are. You’ve already ruled out traditional funding sources like small business loans or working with your local bank (or else you wouldn’t be reading this blog), so now you need to know your private funding options.

You can look to family and friends for a cash infusion or even investigate crowd-funding options both online and in your community. One of the most popular avenues, however, is angel investing.

4. Find Investors

Many startups look to angel investors for a business loan. Angel investors are individuals or companies that specialize in helping new businesses get off the ground — like venture capitalists but with a different business arrangement.

These investors sometimes specialize in certain types of businesses, so try to find one that matches your niche. This can often help reduce competition for funding and increase your odds of getting a loan.

Use these tips to secure a loan for your business and start taking steps toward your goals!