It doesn’t come as a surprise that the biggest initial challenge for small business owners and entrepreneurs is finding the capital to turn their ideas into a full working business. That’s why we are sure that if you are reading this article, you need ways to get capital for your business. Well, you are in luck because we had your problem in mind and we might have a few solutions for you. Here are our 4 tips for finding that much needed “juice” to give your business idea a pair of legs.
1. Fund it yourself
Before you say “But that’s why I am looking to find ways to fund my business! I don’t have the money!”, allow us to explain… You have a business idea for which you think will be a winner, right? But you don’t have the funds to turn it into a reality… Well, the good news is that in the initial stages, you don’t need a fortune to get things going.
You only need enough funds to get started, and once your idea proves that it was a good one, you will need more funds to upscale the whole thing and start earning some serious cash. Therefore, for that first stage of your business launching, you can fund it yourself by using your savings account or carefully using your credit card.
Another quick and easy way to get the funds is to sell your old car as there are tons of junk car buyers that will pay good money for a car you don’t need. This way, you will get rid of your old car and have the funds, and buy a new one once your business kicks off. Win-Win situation!
2. Family and Friends
In case your credit card is already maxed out, or it doesn’t cover the amount your business needs, don’t worry because what are family and friends for if not to help in critical situations. Your family and friends, if they get onboard, will not be investing in your business, no, they will invest in you.
But, in order to have both sides protected, we strongly suggest that both you and your “sponsors” consult lawyers before going down that road. They have to be sure that in case your business fails, their investment is protected, and you have to be sure that there won’t be any unpredicted problems in the meantime.
If you are hearing for crowdfunding campaigns for the first time, are you even serious about your business idea? Unless you’ve been living on the moon you’ve must have stumbled upon this term because every small entrepreneur in the last few years got the funds from strangers that were willing to invest in their idea thanks to crowdfunding websites.
Yes, strangers! Crowdfunding works in a way that allows small investors from anywhere in the world, to invest in a project that they think will succeed. So, if all the previous ways are impossible for you, check out some of the crowdfunding websites you found in the link above and get started!
4. Angel Investors
This is a step that you can take after you’ve successfully launched and stabilized your business and now you need to scale things up so that you can start earning serious capital. You can consider approaching “angel” investors for your branching out funds.
“Angel” investors can be a group or an individual who can use their resources and research to provide you with needed funds, in exchange for ownership equity or convertible debt. Their investments can go from $50,000 to $500,000 or even more. However, you need to be careful who you approach because serious angels are very much real businessmen and they have high expectations and are looking for solid results.