When you get a great idea to start your own business the funding of it is going to be one of the hardest things to do if you haven’t got piles of cash lying around. It is one of the hardest things that new business owners come across and that is actually getting their idea off the ground so it can start earning them money.
If you are looking to start your own business or you are thinking about it and are unsure what you can do to fund it and get it started, then these few tips should give you an understanding of what options are out there for you to fund your business start up.
Family and friends
One of the most classic ways in which people look to fund their start ups is through the help of friends and family. It is obviously a lot harder to convince a stranger in a bank than it is your close friends or family that your idea is a good one. If you are looking to go down this route and they are just loaning it to you then it is best to get it written up or check with a legal advisor just to make sure everything is above board as you don’t want anything to ruin a family or friends relationship because something was to go wrong or you had a disagreement.
Get a small business loan
There are some banks or businesses that offer loans that are specific to small businesses, which can make it easier for a small business to gain bank funding as long as you have a clear idea of what you will do and whether it is affordable to be paid back. If you choose to get a small business loan from a company that isn’t a bank then make sure you do your research and you are careful as they can seem predatory and you may end up owing more than you can afford.
Use your own assets
If you are unwilling to try and fund this dream or idea yourself then why are people going to want to help, you should try and fund as much as you can yourself. Obviously not everyone has the money around to do this but you could have some assets you could sell or trade for services or for money to help you out. If you look at the nations preferred jewelry equity lender Diamond Blanc, they will offer you loans based on jewelry you can give to them as collateral this can help you to fund your business and then still get your jewelry back once you are paid up, there are other options too such as selling your house and renting or a second mortgage to release some tied up equity, obviously this can be a gamble if your business does not succeed so make sure you think it through thoroughly.
Crowdfund your idea
If you feel you have a great idea and you can use social media then crowdfunding could be a great option for you to get the money you need. Websites like indiegogo and kickstarter have allowed inventors and entrepreneurs to fund projects with the funding of random people who like the idea, you can offer some sort of reward such as discounts on products or priority access to the services once you are funded to get people to want to fund your idea. Lots of start ups have been funded through crowdfunding as many people will invest in something they like the look of. The one thing with crowdfunding is how popular it has become. The whole thing is quite saturated so you need to make sure you have a gem of an idea to create the buzz that will make people invest in your idea.
Carry on working and saving
Too many people will just quit their job and try to get a business off the ground but if you have a good job then it is best to keep working and building the business then quit or reduce your hours when it starts getting more successful. This will take some pressure off and allow you to save up and make sure you can carry on paying bills and living well instead of having to struggle and start a business.
If you are looking to start up your own business or you have an idea and you are unsure how you could get it funded and off the ground then hopefully, these few tips will give you an idea of what options are available to you to get your startup funded.