2016 is all about startups, and anyone with at least a bit of entrepreneurial spirit is going to try and start their own business. However, starting a company requires a significant amount of money. In this situation, most people either save or borrow in order to get started. Still, it doesn’t have to be this way. There are so many other ways out there you can finance your startup. With this in mind, here are 10 most creative (and most rewarding) methods.
If you have a great business idea, but no money to make it happen, you can always turn to Kickstarter. Here, you get to share your vision with the rest of the world and all those believing in you (or in the plan, you have presented) are free to donate to the cause. Most modern indie video games are funded this way and there is no reason whatsoever for your business not to do the same.
Borrowing from Friends and Family
Sure, going for a crowdfunding platform like Kickstarter is easy. Even though you are asking for money, it is not that personal, so it is easier to bear. On the other hand, sometimes, it might be best to just muster your courage and ask your friends and family for financial support. Still, some would argue that this is the easiest way to ruin a relationship, so in the end, it is up to you to decide whether this is the risk worth taking.
One of the reasons why a lot of people decide to start their own business is because they are fed up with their day-jobs. However, the first few months of being your own boss might not be the best time for you to quit. If you have a good paying job (even if it is the one you hate), you can use it to financially fuel your startup. Sometimes, you have to take one for the team.
Some companies use presale as the method of financing. Sure, the production stage may not yet be over, but if your product is promising (not to mention famous) enough, there will always be those willing to buy it in advance. There are some risks of your product not living up to their expectations, but financially speaking, that is their risk, not yours.
Another way to get the money you need is to sell your account receivables. Through these invoice loans, you can supply your business with that much-needed cash supply, without having to indebt yourself. All that you do here is sell the money that is already yours, only you haven’t gotten to receive it yet. Furthermore, the fee for this service never exceeds low 5 percent.
Even though it might not be the most pleasant way to gather funds, sometimes selling your assets is the best way to get the money your business needs. Although it is a bit risky, selling your car in order to finance your startup usually ends up as a wise choice. Think about it, if it succeeds, your startup will easily help you buy another car, while it isn’t so the other way around.
Imagine a situation where you are in desperate need of some quick money, while you live in a four-bedroom house. What comes next is commerce 101. You trade what you have for what you need. In other words, you start renting out a room or two in your home in order to fund your startup. As simple as it sounds.
So far, you have considered asking your friends, family and even total strangers to help you finance your business, so why should the government be left out from this list?! Think about it, if your startup is scientific or research-oriented in its nature, you may meet all requirements to ask for government funding.
Finally, if you need a standard loan, but dislike the idea of going to a bank, you can always look for an online loan. In fact, more and more small business owners are turning towards this option every day.
Win a Contest
Random internet strangers are not the only ones who know how to appreciate a revolutionary idea or a good business plan. There are numerous contests out there which may reward you for your ingenuity. If this works out however, it might not be a bad idea to buy a lottery ticket, as well. You never know.
Going to a bank and asking for money is easy, but where is the fun in that. Furthermore, small print and volatile interest rate are not a good foundation to future success. In order to really make a difference, you need to go that extra mile and find an appropriate financing method. Sure, this might seem a bit complicated and confusing. But have no fear. Running your own business (and succeeding at it) is not supposed to be easy in the first place.