5 Approaches for Raising Capital for Your Business

Raising Capital for Small Business

There is no moving forward without money, especially when it comes to running an enterprise, regardless of its size. Sometimes, a business can come to a complete standstill due to the lack of capital and at other instances, a business needs to snatch up an opportunity and for that, they might need capital, and fast. Naturally, the first place we’ll look at is within our company bank accounts. If you could scrape some capital from there, then always go for it. When you have exhausted your supply of capital, only then should you start looking at other options.

There are many approaches an entrepreneur can take when in need of capital for investing in the business. However, not all of them are fast or particularly obliging.

Here are 5 of the best approaches to take for raising capital:

1.The Acquaintances:

The only people who have a tremendous faith in us are our family members and close friends. When the time comes, most of them would be ready to support us by helping us raise capital. So, make sure you approach them before approaching any lender. The good part about this is that you don’t have to pay them an interest amount and you won’t have a time limit to so in. There are, however, chances of you ruining your personal relationships with them. However, that’s entirely on you. Pay them in full and before they even have to ask.

2.Angel Investors:

When rich people are bored, they give off money; make sure you are there when they do. Most top-notch doctors, celebrities and millionaires like to invest their money in things that interest them. Your PR and contacts will come in handy, especially in this approach.


The secret to raising capital is to maintain a good working relationship with everyone. Even your vendors will be willing to help you if you have been nothing but kind, trustworthy, passionate, punctual and honest with them.


Sometimes, all you need is a small amount of capital to get your business running, especially if it is small. There are many organizations and bigger enterprises that are willing to support businesses by contributing small funds to their cause.


In the simplest of terms, crowdfunding is a method of raising capital where you approach not one, but a crowd of people and organizations to gather funds from them. However, most commonly, these funders are common people who are willing to trust and make their investments worthwhile. The most favorable part about this source of raising capital is that these funders do not ask for the capital back – they are funding, not lending. Secondly, they do not even ask for a share or a profit; they just need a small favor instead. For instance, they would like to have the first go at the new product or they’ll like to have something else that you could provide to them. Anyone can use this means of raising funds as long as they are credible and put it to good use. For instance, fans of the series, Veronica Mars, were so eager to have the movie made that they funded the movie. Veronica Mars was named as one of the highest crowdfunded movies in the Guinness Book of World Records.

Always keep lenders and credit lines as your last option for raising capital as they can make you end up in a much worse position than you were in before.


April Salsbury, MBA is a strategist, an analyst, an operational guru, a recognized leader and C-suite global healthcare executive with drive and focus for competitive markets. Co-host of The Business Forum Show and regular contributor to various business journals, she possess multi-functional and multi-national competencies with more than 15 years experience in business and healthcare. Her expertise is in invigorating revenue growth and infusing value of lean practices in growing companies through improvements to cash flow and operations management.

Fueling revenue, growth and profit, Salsbury & Co. is a consultancy firm focused on helping businesses and healthcare organizations achieve excellency. Our specialists have executive experience combined with deep functional expertise to provide our clients with services that drive real impact and results.

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