As an entrepreneur, you are probably chock full of great business ideas, ambition, drive and determination. What you might be lacking in — at least right now — is the bank balance to fund your entrepreneurial dreams.
Fortunately, there are a number of ways that entrepreneurs can obtain the capital to fund their fledgling businesses. Here are three to consider.
As Entrepreneur notes, many new business owners find ways to fund their new companies. If your savings and checking accounts are on the low side, look into other ways to generate needed revenue. One way is to sell off as many unused assets as you can. This can include a rarely driven car that sits in the garage most of the time, artwork you may have in your home, extra items of furniture and other belongings. Even a weekend garage sale that sells gently used clothing, books, old electronics and other items can leave you with a nice chunk of change to put into your new company.
You can also look into moonlighting to earn extra capital for the business. A great way to do this is to join a proven multi-level business that will help bring in additional revenue. Amway, for example, provides people the opportunity to try out the entrepreneurial lifestyle while also earning additional revenue. If you are unsure about joining Amway because you heard a rumor that the company may be part of a pyramid scheme, this is definitely not the case. Amway is a direct-selling organization, whereas a pyramid scheme has nothing to do with selling but relies on recruiting new people to make investments that pay the people who joined earlier. Amway’s Independent Business owners do not make money when new people join; instead they make money by selling the company’s quality products.
Friends and Family
As The Muse notes, asking your BFF and your dear aunt Ida for cash to help start up your company may seem daunting, but it may be a better option than looking into external sources of funding like credit card loans. While you probably should not rely on one or more friends or family members to fund the entire venture, maybe your BFF has a few extra hundred he can loan you for now and your aunt can front you some as well. Of course, borrowing money from close friends and family members can be dicey — the last thing you want is to have money come between you. Before you reach out to anyone to ask for cash, have a well-written business plan ready to go, this way you can let them know exactly what you will be doing in your new business and how you plan to make money. You can also discuss a repayment plan or if the money they send you will be a gift or an investment into the company. If you plan on paying them back, be sure that you write up a schedule and stick with it.
Kickstarter and Indiegogo can be useful tools to help budding entrepreneurs get needed money. You set up a campaign and name the amount of money you hope to raise, and add perks for those who donate. Create a page with photos and/or a video, and include plenty of space to explain your new business and why people should consider supporting it. Spread the word about your campaign on social media, and ask friends and family members to share your fundraising info.