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Funding A Startup? Here Are 5 Smart Ways to Get Started in 2023

Starting a business can be an exciting and rewarding venture, but it also requires some financial planning and preparation. Funding your startup in 2023 is one of the most important aspects of starting a business, so it’s vital to have an understanding of the different options available.

There are many ways to fund your startup or small business, from self-financing to seeking investments from angel investors or crowdfunding platforms. At Tilted Concepts we have started, scaled and sold many businesses, and through our experience we will explore five smart ways you can get started with funding your new venture. With this information in hand, you'll be able to have a better grasp on next-steps when looking for ways to finance your startup!


Exploring personal investments is a great way to get started with funding your business. This can include using savings, taking out home equity loans or lines of credit, or tapping into retirement funds. It’s important to consider the financial risk involved in any investment you make and weigh it against the potential rewards before making any decisions about self-financing.

Other loan options may also be available for entrepreneurs who are just getting started. Personal loans from banks and other lenders can often provide competitive rates that might work better than utilizing personal investments. Friends and family lending money for start-up capital is another option, although this carries its own risks since relationships could be at stake if repayment isn’t successful.

Friends and Family Financing

Friends and family financing is an attractive option for many entrepreneurs, as it can provide access to much-needed capital without incurring additional debt or giving away equity in the business. This type of funding has some advantages including a lack of interest charges and flexible repayment terms that are more lenient than those associated with traditional lenders. Plus, this form of financing allows you to maintain control over your company by not having to give up any ownership stakes.

On the other hand, friends and family loans also carry certain risks that should be taken into consideration before proceeding. For instance, these transactions often involve personal relationships which can complicate repayment if things don’t go according to plan—and could lead to strained dynamics between involved parties as well as potential legal ramifications down the line (especially if proper documentation isn't completed).

Additionally, since there are no formal interest rates or credit checks involved in these types of arrangements they may be seen as too risky by some investors who prefer more security when investing their money.

Angel Investors

Angel investors are an increasingly popular option for entrepreneurs looking to obtain startup capital. These individuals typically have experience investing in startups and offer substantial funds that can help get businesses off the ground. When seeking angel investment, it’s important to understand their criteria as they tend to be very selective about the companies they choose to invest in. Generally, angels look for promising companies with viable business plans backed by experienced teams with a track record of success. They also examine past performance and potential return on investments when making decisions so having solid financial projections is key.

The advantages of working with angel investors include access to large sums of money without giving away equity in the company or taking out expensive loans; however, there are some drawbacks too. Angels often demand high returns on their investments which could put pressure on profits down the road if expectations aren’t met—as well as require a higher level of transparency from the company regarding its finances and operations than what might otherwise be necessary. Additionally, since these arrangements involve personal relationships, disagreements between parties can lead to strained dynamics and even legal issues if not properly handled from day one (which is why having clear contracts outlining terms is essential).


Crowdfunding is a popular form of fundraising for entrepreneurs looking to launch or expand their businesses. With the rise of platforms like Kickstarter, Indiegogo, and Go Fund Me, it’s become easier than ever to raise money from potential backers all over the world. The key to success with crowdfunding lies in understanding how these platforms work and what it takes to create an effective campaign.

When considering crowdfunding as a way to fund your business venture, it’s important to research different platforms and learn more about their respective costs and requirements before committing. Some sites may require upfront fees while others do not; some offer rewards-based campaigns while others only allow donation-based ones; some have strict deadlines while others are more flexible—so there are many factors that need to be weighed when deciding on which platform best suits your needs. Additionally, creating an attractive page full of visuals such as videos or photos can help draw people in and increase chances for success even further!

Once you’ve selected the right platform for your project, you should also consider setting up a budget beforehand so you know exactly how much money needs to be raised in order for the campaign goal(s) to be met—and then set realistic goals accordingly (it’s better not ask too much!). Finally, spreading the word about your project via social media networks is essential if you want maximum exposure—so make sure you take advantage of any advertising opportunities available through the platform itself or elsewhere online!

Small Business Loans

Traditional business loan options can vary widely depending on the type of lender and credit score of the applicant. Small business loans are typically offered through banks, credit unions, or other financial institutions. These lenders will evaluate an applicant's past credit history and current financial situation to determine whether or not they qualify for a loan. Some of the most common criteria used in making these decisions include personal debts, annual income, assets owned, and collateral available.

Read our article here on How To Apply For An SBA Loan

A wide range of small business loans are also available from government-sponsored programs such as the Small Business Administration (SBA). The SBA provides various types of funding including 7(a) Loans which have no limit on how much money can be borrowed; 504 Program Loans which offer lower interest rates than traditional bank financing; Microloans that provide smaller amounts up to $ 50K; and Disaster Relief Loans specifically designed to help businesses affected by natural disasters like floods or hurricanes rebuild quickly.

There are also alternative sources that entrepreneurs may consider when seeking out financing options such as venture capital firms or angel investors who often take more risks when investing in startups—but usually require a certain level of equity ownership in return for their funds.

Additionally, crowdfunding platforms allow individuals to raise money by offering pre-sale products/services through campaigns so this is another option worth exploring if applicable!

Ultimately it’s important for applicants to carefully assess each potential source before committing since different lenders have varying requirements regarding repayment terms and conditions associated with their products/services—and understanding these details ahead of time can save both time and money down the line!

Final Thoughts

In conclusion, there are many ways to fund a start-up or small business. Friends and family financing can be an attractive option as it offers access to capital without any interest charges or giving away equity in the company.

Angel investors can provide large sums of money but require experienced teams with past success backed by solid financial projections. Crowdfunding is becoming increasingly popular due to platforms such as Kickstarter and Go Fund Me allowing entrepreneurs to reach potential backers all over the world—but creating a successful campaign requires a budget, realistic goals, and effective promotion via social media networks.

Traditional lenders offer various types of loans that have specific criteria for qualification while government programs like the Small Business Administration (SBA) provide additional options for those affected by natural disasters or seeking smaller amounts up to $ 50K.

Ultimately choosing which form of funding best fits your needs will depend on your individual circumstances so it’s important to carefully assess each source before committing!

Maybe buying a franchise is a better option. We have franchise opportunities available in multiple markets across the United States. For information, contact our corporate team HERE!


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