You’ve been inspired to start your own business. As a new entrepreneur, you know that there will be a lot required of you to make your startup a success. There’s developing a strong business plan, designing an office, marketing, inventory, staffing (potentially), as well as other tasks that will need to be carried out. The only trouble that most new business owners have is, there isn’t enough money to go around. No matter what kind of startup you’re considering, if you don’t have capital set aside to bring it to fruition, you face an uphill battle.
Fortunately, you’re not the only entrepreneur who’s ever had trouble with finances. Many before you have taken different approaches to securing the cash they need to fund their startup. Below, are just a few of those methods.
Ask for Donations
You may believe that asking for donations won’t work, however, there are plenty of successful entrepreneurs who launched their companies with this very method. There are a lot of people out there with money who are willing to donate to what they believe is a good cause or idea. You can start by asking those you know such as friends and family. Whether you $15 or $150 from each person, it goes a long way to getting things you’ll need to be successful.
If friends and family don’t get you to your financial goal, you can also ask internet users for their assistance. There are crowdfunding sites that allow you to set up an account and ask social media users for donations towards your business. With the right message and exposure, you could easily raise thousands of dollars for your startup.
Small Business Loans
Asking for donations is a great medium for raising capital, but it can also be unpredictable. The donations could trickle in over time making it difficult for you to ever accumulate a large lump sum. That’s why some entrepreneurs have opted to borrow the funds from an established and reputable financial institution. Companies like the Lending Club, make it easy for you to apply for small business loans online. You can receive several thousand dollars towards your business expenses.
If you do decide that taking out a loan is the best approach for you, be sure that you have properly budgeted to repay the loan and interest in full. As it can take time for you to generate positive cash flow in your startup, you’ll likely need to pay from your personal finances. Locating a lender with low-interest rates and flexible repayment options can help ensure you don’t get in over your head.
Side Hustle
Financial experts will tell you that it always pays to have more than one stream of income. Though your main priority is the success of your small business, you can utilize other skills you may have to earn some extra money on the side. There are a lot of things you can do online or services you can offer during your downtime to generate cash. You could walk dogs, do lawn work, sell crafts, assist with income taxes, tutor neighborhood children on subjects you’re well-versed in or whatever else you are good at.
Bootstrapping
If you can’t generate enough funds to keep your startup afloat it may be necessary to buckle down. Bootstrapping is a popular method used by entrepreneurs from all industries. The idea is to be mindful of the money you have (budgeting), spending only on what is necessary, and taking advantage of resources and talents you may have to cut costs. Some examples might include learning how to manage your own social media marketing so you don’t have to outsource it, looking for free tools and software, reducing your personal spending habits to make room for a business budget, and more.
You can have a ton of great ideas that you’d like to turn into a business, however, none of it can be made possible without cash. If you’re presently looking for a means to fund your dream, consider the methods described above. They have all been utilized in the past by entrepreneurs just like you looking to take the road less traveled. With these tips and good financial management skills, you’ll have no problem with growing your business successfully.