by Dan Radak, Negosentro.com |
Being your own boss is a dream come true for a lot of people. Unfortunately, even when you come up with a million-dollar idea, you will probably still lack the funds of making all of it come together. Luckily, there are more than a few ways to raise money for a startup and all you need to do is figure out which one of them works the best in your case. Keep in mind that every single one of them has its own set of advantages and disadvantages, and this is something you need to take into consideration before you make up your mind.
1. Get a Partner
A lot of people decide to partner up in order to fund their startup. While this may look great in theory, such method has one major flaw. Even though you may share an interest with someone it doesn’t mean that this person shares your vision as well. By giving up a part of equity in your business you will no longer be able to call all the shots on your own, which is probably a part of the reason why you started your own business in the first place. On the other hand, if you find someone you truly believe is compatible with your work-pace, then by all means you should go through with it.
2. Sell Something
Another option would be to sell an asset. The greatest advantage of this option is that you don’t owe anything to anyone. Depending on how much money you need, you can either sell your home, a property you own, or your car. However, you don’t have to necessarily sell your physical assets. If you have any account receivables you have no luxury of waiting for, you could just trade them through The Invoice Marketing platform. In this way, you get all your money at the hours’ notice while having to pay a humble fee of no more than 5 percent (it usually goes much lower) of the total value.
3. Apply for a Loan
The most common solution to this particular problem is going to a bank or a credit union and applying for a loan. While this keeps things quite simple, you have to watch out for the interest rates. Keep in mind that it might take a full year until your business is actually earning a profit, so monthly payments such as this may be just enough to shut your business down. Furthermore, you need to have a positive credit rating in order to receive a serious sum, which is something you need to think months (if not years) in advance.
Finally, instead of having to deal with bank bureaucracy, real-estate agents, and troublesome shareholders, you could try your luck on the internet. What this means is presenting your business idea online to a bunch of strangers and encourage those who believe in you to donate. While this may not seem as reliable, some of the Kickstarter projects turned out to be extremely successful. Still, this is not just about having a great plan, but also about presenting it in the best way possible. You need to convince others that your idea is worth their money.
While the aforementioned method relies on you having something of value to sell, some of these methods require no money whatsoever. Needless to say, this gives everyone a fighting chance. However, different methods may suit different business niches- which is why something that may not work for someone else, might seem as a flawless solution in your case. Where the money comes from (and should you return it) can sometimes be more important than how much you have. Keep that in mind before making a final choice.
Dan Radak is a marketing professional with ten years of experience. He is a coauthor on several websites and regular contributor to BizzMark Blog. Currently, he is working with a number of companies in the field of digital marketing, closely collaborating with a couple of e-commerce companies.