Anytime you have a great business idea, funding is the first thing you should figure out, and it can be quite the sticking point for someone who doesn’t have money just lying around to start a business with. There are tons of tips out there for new startups, but very little on any realistic ways to fund that startup. Take heart because there are ways to fund your new business, you just have to know where to find them.
Get a Loan
Whether it’s a personal loan just to get you headed in the right direction or a larger business loan to get the doors open, there is always a loan agency out there that will be willing to help a new startup.
When it comes to applying for a business loan, there are quite a few banks out there that are willing to help. However, it can be difficult to get a loan, as they’re very picky about which small businesses get their loans. There are alternative solutions, just make sure to do your research to determine if they’re legit and on the up-and-up.
Family and Friends
While borrowing money from your friends and family is frowned upon, for obvious reasons, sometimes it’s the only way to go. Borrowing money from friends and family to start a business does more towards assuring them that they’ll get a return on their investment than borrowing for other reasons. Nine times out of ten, friends and family are supportive of the dream you’re chasing and more than willing to help. Taking the money as a loan, not a gift, is the best way to go. Make sure both of you get sound legal advice on the venture before taking the plunge, however.
If you’re great at social media and have a knack for marketing, then a crowdfunding campaign might be the best way to get the money you need for your new business venture. When the platform first started, many new businesses had great success with it. The only downside to crowdfunding is the vast majority of people who are trying to start their new businesses the same way.
While this may take a little longer than some of the other methods on this list, fundraisers can help you raise the capital you need. For example, if you’re still a little short after using one of the methods above, try hosting a fundraiser such as a bake sale or even a raffle to raise the rest.
Try a Small Business Grant
There are organizations that offer small business grants to women, minorities, and other business ventures. You do need to be careful with these, however, and find out if you have to pay the grant back before you sign to receive it. While not all grants have stipulations, it’s best to know if they do ahead of time to be on the safe side.
Keep Your Day Job
While this might not be what you want to hear when it comes to starting a new business, keeping your day job is a way to help fund your new business. Your bills still have to be paid and you don’t want to be stressed about food and bills while you’re trying to get your startup up and running. Keeping your day job lets you take your time with your dream and vision, and pay the bills at the same time.
These are just a few of the ways that you can finance your new business. Remember, running it is essential and should be done carefully, but first you have to have the capital to open the doors, to begin with.