Consumers are spending more than ever and small business owners are cashing in big-time. Because of that reality, we’re seeing businesses open their doors by the hundreds of thousands.
All of today’s business frenzy might have you feeling inspired to start a business of your own. And you know what? That may be a great idea!
Being your own boss and being able to pour all of your skills and creative energy into a venture can be an incredibly fulfilling experience.
Here’s the thing though… Starting a business costs money and getting your hands on the money required to get your operation running might be a challenge.
To help you get the funding you need, we recommend trying out these raising money for business ideas!
1. Self-Financing
This might seem like a no-brainer but we figured it’s worth a mention anyway because there’s a lot of stigma surrounding it.
If you have money sitting in your savings account and want to launch a business that you really believe in, dip into your cash stores and get your venture funded. Contrary to popular belief, this is how a lot of people get their ideas off of the ground.
There’s this mindset among many business owners that you should only use other people’s money when getting your start-up going. That mindset often leaves visionaries waiting around for years and leads many to give up on their ambitions altogether.
Don’t fall into that trap.
If you’re confident in your vision then put your money where your mouth is and get things going.
2. Borrow From Friends and Family
Friends and family can be a low-hanging fruit when it comes to raising money for business ventures. While friends and family members might be quick to give though, borrowing from them is not without its drawbacks.
When people invest in a business, there’s no guarantee that they’ll see their money again. Experienced investors understand that concept. Inexperienced investors often don’t.
Because of that, if you end up pouring your loved one’s money into a venture that fails, you may end up losing your relationship over it and may even end up on the wrong end of a lawsuit.
3. Crowdsource
The 21st century’s favorite raining money for business ventures method is crowdsourcing.
With crowdsourcing, you’ll hop on a website like GoFundMe or Kickstarter and then ask people for donations to fund whatever idea it is that you have. If strangers believe in your idea and send you the money that you need, you’ll be able to get your operation going!
In return for their investment, you don’t have to pay your investors back with anything but prizes that you disclose prior to their sending through whatever amount they decide to contribute.
Oculus (which is now owned by Facebook) was entirely funded via crowdsourcing.
4. Sell Your House
Most people’s homes hold a massive chunk of their net worth. Because of that, liquidating your home often represents a quick way to get your hands on cash for your business.
This great company and others that might operate closer to your area will purchase your home all-cash, fast. If you don’t want to outright sell your home, you could also borrow against it with the help of a bank.
5. Look for Grants
Many communities offer small business grants. These grants represent straight-up free money that you can use for any purpose related to your business’ operation.
The big catch with grants?
They can be hard to find since they’re usually funded by private entities. Also, grants tend to be discriminatory in that you sometimes have to belong to a certain group of people to qualify for them (females, minority groups, etc.)
A quick Google search can turn you onto grants in your area. Alternatively, you can go to your local city hall and see if a city representative is aware of grant opportunities.
6. Start Your Business as a Side Hustle
One of the best ways to fund your business venture is to work a stable job as you’re launching it.
For example, if you work 8-hours per day, you could get off of work and put 2-3 hours into your business venture afterward. As your business grows, you could progressively funnel more hours from your job into your business until you have the money that you need to quit your job altogether.
Another reason why this money-raising method is so great is that if your business tanks, you’ll still have a reliable way to pay your bills.
7. Take Out a Loan
If all else fails, you can always go to the bank and just ask them for a small business loan. Depending on the loan that you’re offered, getting one could be a better idea than a lot of the other suggestions that we’ve laid out prior to this point.
Just be aware of your loan’s term (how quickly it needs to be paid back) and the interest rate that it carries.
Uninformed borrowing often leads to financial ruin.
Our Final Thoughts on Raising Money for Business Strategies
Raising money for business purposes might seem like an insurmountable task. With a little creative thinking though, you can often find ways to get your hands on the funds that you need to be successful.
Mull over our funding suggestions and see which ideas might work best for you.
Remember, our ideas just scratch the surface of what the possibilities are. If you need more tips, talk to a business advisor or check out more of the business-oriented content on our website.
