They say that the biggest things in life start small. That saying applies true to your business idea as well. It started with a spark, and now, you’re already looking for ways on how to fund it. Who knows? Your small business might just grow into an empire decades from now. The furniture giant, Ikea, started with a boy delivering his goods on a bike, after all.
In this article, we are going to share with you the tried-and-tested ways to fund a business. What’s more, is that our tips don’t really require much money at all. Most of them don’t even require anything from you other than your perseverance and hard work. Excited? Then let’s get started.
Take out a loan
The easiest way to start a business is to apply (and get approved) of a loan. There are different types of loans, like payday loans and personal loans, that you can apply for. You won’t even need to get out of your house to seek out a storefront lender. There are a lot of financial institutions online like OpenCashAdvance that offer different borrowing options and payment methods.
Work for your own capital
If you’re not very comfortable starting your business with debt, then you can always build the funds that you need on your own. First, you can continue on with your day job and slowly establish your business by treating it as a side hustle. Your day job can pay for all the expenses you need in order to launch. Or, better yet, if your business is service-oriented, then you can simply start offering them already even with the most minimal of gear at first. What’s important is that you’re already starting to build your clientele. You can always upgrade your equipment bit by bit.
Seek out an investor
There are different ways to find a potential investor for your business.
Family and Friends
First, you can use your existing network. Ask your family and friends if they’re willing to invest in your vision. Now, we’re not saying that you’ll just randomly pitch your weird business ideas during dinner. We mean business.
Show them how ready and serious you are by doing your homework and coming up with a detailed business plan. Pitch it to your potential investors professionally. Set a meeting and dress the part.
If you want to seek out an investor elsewhere, then you can look for an angel investor instead. This is an existing business owner who is looking for ways to diversify his investments. They’re also referred to as “angels” since most of them favor startups and ventures that are still in their infancy.
You have nothing to worry about if you already have a solid business plan, but we do recommend that you clarify your terms with him. Do you expect him to be a silent business partner? Does he expect to be consulted in every business decision? When will they have the option to cash out? These are but some of the things that you need to discuss with your angel.
Consider alternative funding options
Finally, there you can also explore other funding options to start your small business.
There are financial institutions like Accion and Kiva that offer microloans to startups and beginner entrepreneurs. Just be aware that these groups have the objective of alleviating poverty. This is the reason why they favor minority groups, people with disabilities, and those that live below the poverty line. If you think that you’re eligible, though, then by all means, we recommend for you to apply.
Another option that you can consider is being crowdfunded. Crowdfunding websites like Kickstarter and GoFundMe are growing increasingly popular, and that’s mainly due to the hundreds, if not thousands, of people that they have already helped.
It works by providing you with a platform where people can learn about your project or small business online. Each person can then choose to donate an amount to you. This amount can be as small as five dollars, but it doesn’t really matter. What matters is to get more people to donate so that the money adds up until it reaches the goal you have set.
If you do choose to take this route, then just know that launching a crowdfunding campaign can be very time consuming and it will take a lot of digital marketing techniques to promote it online.
And that’s it! In fact, these are not the only ways that you can do in order to fund your business. We’re sure that there are other methods out there that we haven’t discussed yet. The ones we have listed above are simply the ways that we have already tried ourselves. Thank you so much for reading all the way through and good luck on your venture!
Jim Hughes is a content marketer who has significant experience covering technology, finance, economics, and business topics for about 3 years. He also works as the content manager at OpenCashAdvance.com