Need Funds for Your Shopify Store? Here’s How
Starting and growing a successful Shopify store requires more than just great products and marketing ideas. At some point, you’ll need capital to cover startup costs, inventory, advertising expenses, and to hire help.
The idea of securing funding can feel overwhelming, especially if you’re juggling a full-time job, caregiving duties, and running a business in your spare time. But don’t worry! There are a variety of ways to get the funding you need without losing control of your business.
In this post, I’ll walk you through some funding options available to Shopify store owners like you that are ready to launch and scale their business. Get ready to feel confident and empowered to take the next step in growing your business!
Understanding Your Funding Needs
Before diving into funding options, let's take a look at the areas where you might need financial support:
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Startup Costs: Setting up a Shopify store can be affordable, but you’ll need to budget for things like website design, apps, domain names, and a professional brand identity.
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Inventory Costs: Buying inventory in bulk can be expensive, especially if you're scaling quickly. Having enough working capital to stock your store is crucial for long-term growth.
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Marketing and Advertising Expenses: Effective marketing is key to increasing traffic to your store, but it costs money—especially when you're paying for ads on platforms like Facebook, Instagram, or Google.
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Hiring Help: As your business grows, you might need to hire virtual assistants, customer service reps, or fulfillment help to take the load off your shoulders.
Now, let’s dive into some specific ways you can secure funding for your Shopify store.
Grants: Unlocking Free Money for Your Business
One of the best ways to fund your business without taking on debt or giving up equity is by applying for grants. Grants are essentially “free money” that don’t need to be paid back, but they can be difficult to find and apply for. That's where platforms like Skip come in handy.
Skip is a great platform to help you find and apply for grants that are specific to your business type, location, and industry. It’s designed to save you time and help you focus on the grants that are most relevant to your Shopify store. Instead of sifting through pages of information, Skip helps you research grants based on your niche and connects you with the right opportunities.
But what’s even better? You can manage all your applied grants in one place, allowing for easy tracking. This will save you hours of time, so you can focus on what really matters—growing your business!
While applying for grants can take some time, the effort is often well worth it because, unlike loans, grants don’t need to be repaid. Plus, there are many grants specifically for women entrepreneurs, so you might find opportunities that are perfectly aligned with your goals.
Next Steps: Create a free account on Skip and start researching grants based on your business. Focus on the ones that match your niche, and set aside time each week to apply.
Working Capital: Get the Funds You Need, Fast
If you’re looking for a way to get funding quickly without giving up equity or taking on high-interest debt, Clearco offers a fantastic solution.
Clearco offers working capital with zero collateral and no personal guarantees, which is a huge plus! It’s non-dilutive, meaning you get the capital you need to grow your business without giving away ownership. Whether you need funds for vendor invoices, marketing, shipping fees, or logistics, Clearco has you covered.
Best of all, they don’t charge upfront fees and payments are based on a set dollar amount based off your revenue. This helps you manage your cash flow easily, without any surprises.
What makes Clearco stand out is how easy they make the process. You can get funding in as little as 24 hours!
Revenue-based finance typically involves payments as a percentage of revenue that fluctuate accordingly. Clearco’s payments do not rise or fall with revenue—their payment amounts are fixed weekly.
Why We Love Clearco:
- Non-dilutive (no giving up equity)
- Quick access to funds
- Payments are based on your revenue
- Flexible use (inventory, marketing, logistics)
Next Steps: Discover your funding capacity in 2 minutes on Clearco’s website and apply for working capital. It’s a great way to ease your cash flow and get the funds you need quickly.
SBA Loans: A Traditional Option with Support for Small Businesses
The Small Business Administration (SBA) offers a variety of loans for small businesses, including Shopify store owners. These loans are government-backed, which means they come with more favorable terms than traditional bank loans.
While SBA loans are an excellent option if you need a significant amount of capital, they do require a bit of legwork to apply. If you decide to go this route, expect to provide financial statements, business projections, and other documentation.
Pros of SBA Loans:
- Lower interest rates
- Longer repayment periods
- Up to $5 million in funding
Cons of SBA Loans:
- Long application process (can take months)
- Collateral required
- Personal guarantee often needed
Next Steps: Research the different SBA loan programs (like the SBA 7(a) loan) and gather the necessary documents. If you’re approved, you could get funding to cover inventory, expansion, or hiring help.
Taking on Investors: Giving Up Equity for Capital
If you’re open to giving up a share of your business in exchange for funding, taking on investors could be an option. Investors provide capital in exchange for equity (ownership) in your business. They might also offer strategic advice and connections, but keep in mind that giving up equity means sharing control of your business.
Pros of Taking on Investors:
- Large amounts of capital available
- Investors can bring valuable experience and networks
- No repayment obligations like loans
Cons of Taking on Investors:
- Loss of some control over your business
- Pressure to deliver high returns
- Dilution of ownership
If you choose to seek investors, consider whether you’re comfortable with giving up a portion of your business and the possible pressure that comes with it. If you decide to take the plunge, you can start by seeking angel investors or venture capital firms that specialize in eCommerce businesses.
Next Steps: Look into local angel investors or venture capital firms that focus on eCommerce or women-owned businesses. Prepare a solid business plan and pitch before reaching out.
Fund Your Shopify Store with Confidence
Navigating the world of business funding can feel overwhelming, but with the right approach, you’ll be well on your way to scaling your Shopify store to new heights.
Whether you apply for grants using Skip, secure working capital from Clearco, explore SBA loans, or consider taking on investors, each funding option has its own benefits and challenges. The key is to choose the one that aligns with your business goals and financial situation.
As you move forward, remember that you don’t have to do this alone. You have the power to create change and achieve your goals, and there’s a whole community of entrepreneurs out there, just like you, who are ready to support each other. With the right funding and mindset, you can turn your Shopify store into the profitable, thriving business you’ve always dreamed of!
Next Steps:
- Start researching grants on Skip to see if any are relevant to your business.
- Check out Clearco for quick access to working capital.
- Evaluate SBA loans and decide if they’re the right option for you.
- Consider seeking out investors if you're ready to scale quickly and share ownership.
You’ve got this! Stay focused, keep pushing forward, and remember: the world needs more wealthy women building successful businesses!
