While it may not come as a surprise that there is a relatively high rate of failure for new businesses, it is quite staggering to note that an estimated 96% of all ventures fail within their first 10 years. There are many reasons for this, so of which are specific to each individual business and its own, unique circumstances.
There are also some universal challenges that face new businesses, however, with initial funding issues one of the most prominent. Whether businesses fail to secure the necessary funds or find themselves relinquishing too much of their equity in the pursuit of investment, a poorly-defined launch strategy can undermine the long-term growth of any venture.
In some respects, self-funding represents one of the very best options for aspiring entrepreneurs. This relies on the execution of your plans, however, and your ability to think creatively when appraising your options.
With this in mind, here are some ideas to help you on your way:
1. Build Passive Income Through Forex Trading
One of your best options is to consider passive income streams, which can be combined with an annual salary to optimise your earnings. This boosts your disposable income levels considerably, creating capital that can subsequently be reinvested into your new business venture.
Trading forex is an excellent place to start, as this offers you access to an extremely liquid and global marketplace where you can profit even in a depreciating climate. This will require a significant commitment, of course, while you will also need to spend time accumulating knowledge prior to creating a lucrative portfolio.
Resources such as Sharp Trader can help you build a wealth of forex knowledge, while its core lessons are delivered in a way that is designed to help novice traders.
Not only this, but this resource has a direct affiliation with the AvaTrade platform, meaning that you can take your newly acquired knowledge and quickly apply this practically in a real-time, simulated marketplace.
2. Retain your day job for as long as possible
The notion of passive income is ideal as it enables you to focus on your day job and sustain your primary source of income. This is important, as retaining your day job as you launch your venture can actually boost your earnings significantly, creating some much-needed income that can be used to realize your concept quicker.
This is far easier said than done, of course, but there are some steps that can help you on your way. You need to create a viable plan of action with defined time-frames, of course, while using strong organizational skills will also ensure that you use your time as effectively as possible. A tenacious work-ethic is also key, as this will help you to stay focused and work diligently even during difficult times.
If you are really prepared, you can also spend a period of time combining a day job with freelancing prior to launching your business. This allows you to effectively sell your most marketable skills, while it is an ideal alternative for people you are averse to the idea of financial market trading.
3. Consider affiliate sales
Clearly, you need to select a self-funding option that suits your personal circumstances and the nature of your business. The stage of development that your business is at should also be considered, as this may actually identify unique opportunities to raise funds.
Let’s say that you have a saleable product, for example, but no discernible business infrastructure or channel through which to distribute it. In this case, you can leverage your product as a way of generating income, by selling this through affiliate websites in exchange for a fixed commission fee per sale (usually around 10% of 15%).
One of the best examples of this is to sell through a third-party website such as Amazon, which offers businesses access to a global market that generates significant funds for reinvestment.
Depending on the nation of your product, you consider licensing this to a supplier or manufacturer. If your innovation has been designed to compliment as an existing product, for example, you can effectively enter into a licensing agreement for others to sell this in exchange for a predetermined royalty on every unit sold.
This can be extremely lucrative for innovative products, while you can even enter into short-term agreements that offer flexibility to your business. If you arrangement ends and you have generated enough income, you should be ready to launch your own venture for real.