Many remarkable business ideas fail to see the light of day because the owners didn’t have the capital to bring it to life. Some do get started but wither away equally sooner due to lack of funds. The world needs your business so don’t let money be a hindrance. Aside from relying on loans and investors, consider these six other ways to raise money for your business.
Crowdfunding
Crowdfunding is a relatively popular way to raise money for projects and small businesses. Online platforms such as GoFundMe allows you to reach a large number of people online with your idea. If it is impressive enough, you are likely to raise some money for your business.
Family and Friends
If you’re trying to figure out how to fund your business without taking a bank loan, borrowing from loved ones is one alternative. This is advantageous because personal connections typically offer more lenient terms on loans or may even offer it to you as a gift. This usually means better terms for loans than you’d get at a regular bank. Funding from loved ones can be obtained much more quickly too.
The most obvious disadvantage of borrowing money from loved ones is that it might lead to strained relationships if things go sour.
Savings
Some people struggle with going knee-deep into a business by risking their savings. That shouldn’t be the case. It sure is risky but so is every other form of funding you are likely to use. Consider investing any savings you have in your business. If it goes well, you end up with more money. If it doesn’t work out, you end up with a lesson and no debts to pay.
Go into a Partnership
There are some persons who have the financial means to start a business but lack either the time or the technical expertise to do it successfully. The easiest method to get the business off the ground is to form partnerships with such people. In the end, it’s a win-win for everybody.
It is however important to find people who are share the same interest in your kind of business.
Business Grants
A business grant is money given to struggling enterprises. Grants, unlike loans, do not have to be repaid. The funds are not loaned and therefore do not attract an interest. Grants are distributed to enterprises with no obligation of repayment.
To qualify for a grant however, you may be obliged to meet certain conditions set up by the organization offering the grant.
Peer-to-peer pooling
Peer-to-peer pooling is something to think about if your network is truly remarkable. Friends or acquaintances pool their resources and give them to one person to use. In order to ensure that everyone in the group gets a share of the pie, the process is repeated over and over again.
This is a brilliant strategy for acquiring interest-free capital for your company with the least amount of hassle. But for this to succeed, all participants must be loyal and reliable.
One Response
Very nice