4 Proven Ways to Fund Your Next Business Idea (2024)

Do you know how many different ways there are to fund your company? Angel investors, crowdfunding, loans—the list goes on. It can be hard to decide what’s right for you and your brand. 

In Vicky Pasche’s case, she needed the money to fund Dapper Boi, a body inclusive, gender-neutral fashion brand. She and her co-founder, Charisse Pasche, turned to Kickstarter in 2015 to launch the company. Five years later, they raised $300,000 through equity crowdfunding alone. 

Whether you’re trying to secure your spot in the market or find the best way to bring your concept to customers, Vicky’s advice will help you fund your business. 

Don’t miss an episode! Subscribe to Shopify Masters.


4 Proven Ways to Fund Your Next Business Idea (2024)

4 ways to fund your business

Co-founders Vicky and Charisse (pictured in the center and far left) took the first step to fund their business by finding like-minded people who believed in the idea. Dapper Boi

1. Run a crowdfunding campaign 

If you want to start a business but don’t have the capital, look for your ideal customer to help fundraise on a crowdfunding platform like Kickstarter. 

“When we went on Kickstarter, it was just about connecting and relating to people. We were solving a problem, so we had to find people that had the same problem,” Vicky says. Kickstarter allowed her to connect with people facing the same challenges, and they were excited about her solution. Vicky and Charisse raised $26,000 after their initial ask of $18,000.

Try using crowdfunding tools like Kickstarter to find like-minded people who will help you achieve your vision.

2. Take pre-orders

While a great business idea can be lucrative, you’ll need money upfront to get production started. A way to solve this issue and bring in capital is to take pre-orders. 

“At the start, we offered [pre-orders] with an intro price discounted by 30%, for three weeks only,” says Vicky. ”Customers went nuts.” The limited time pre-order model raised demand and brought in a quick influx of cash for the founders. 

The money from a pre-order campaign will fund product production and give you a positive runway to keep growing the business. 

3. Connect with investors 

Vicky recommends using LinkedIn, signing up for networking events, and taking courses to meet as many people as possible. “You need to connect early and often,” Vicky says. The odds of finding an angel investor is higher with each new person you meet and share your vision with. 

There is no shame in asking people for help or for an introduction that will result in you raising more money. Vicky asked a mentor for advice and ended up meeting Dapper Boi’s first investor, who infused $250,000 into the company. Meeting more people will raise your chances of finding the right person to invest in your brand. 

4. Open up equity crowdfunding 

Attracting the right angel investor can be challenging and take a lot of time. That’s why equity crowdfunding is a great option once you’ve found your target audience. Vicky and Charisse usedStart Engine to offer customers partial ownership of Dapper Boi.

This approach is debt-free and allows for an influx of cash into the business, without having to exchange physical goods. Contributors receive a financial stake in the business for showing their dedication and support of the company’s growth. 

It’s intimidating to allow one investor to own part of your business. This route will allow you to feel the support of the community while gaining cash for the company. 

To learn more about Vicky’s journey, and discover how the brand manages a 50% customer return rate, tune in to the full Shopify Mastersepisode.

Next Post

Government of Saskatchewan to cancel small business tax increase - DiscoverEstevan.com

Mon Jun 10 , 2024
The Government of Saskatchewan introduced some recent legislation to provide relief to small businesses in the province.   As outlined in the 2024-25 Budget, The Income Tax Amendment Act, 2024 maintains the small business tax rate reduction in Saskatchewan at one per cent until June 30, 2025.   “Small businesses are the backbone […]
Government of Saskatchewan to cancel small business tax increase – DiscoverEstevan.com

Latest Post