Unless you happen to be an heir with a million-dollar waiting at your disposal, one of the biggest obstacles to raising a business from the ground up is capital. Let’s explore different ways in which an aspiring business owner can get some money to start off.
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Look for a Grant
According to Lantern by SoFi, “Grants are lump sums awarded to a business or business owner that, unlike loans, do not have to be repaid.” Grants can either be given to a business, an initiative, or an individual. They are either given this money out of goodwill, to return with zero interest or with a small interest. There are many ways to secure free start up business grants, starting with trying those offered by the government or the private sector. Scour the internet frequently for offers, prepare a great pitch and send applications where possible.
Another great way is to ask your closest circle to chip in. A little from your friends here, a little from your family there, and some more from your colleagues, you could be well on your way to the launch. You can hold a gathering to do it physically or create an account on one of those crowdsourcing platforms that could even help strangers chip in something.
Take a Small Business Loan
Seeking credit is another great way to get funding to start your business. Bigger financial lenders might be wary of startups, but smaller lenders like microfinance and alternative lenders could come in and save the day. Be wary of these lenders, though, as some of them have very extreme lending rates and other predatory terms in the fine print. Read all terms and conditions thoroughly.
Look for an Investor
Investors are a good option for entrepreneurs who feel like they can handle meeting expectations other than their own. Individuals with high net worths are always looking to invest in new businesses and ideas. You can seek out these opportunities from their social media pages and websites and send an iron-clad pitch. Apart from money, you could be able to benefit from their million-dollar wisdom as well.
Trade-in Some Services
As an entrepreneur, you might have more than one skill and you could use this to your advantage. In your networks or in the entrepreneur communities, there are people who are always looking to chip in to see an idea blossom. You could get a marketing strategy, some graphic design work done, some printing, or even social media management. Bartering in these skills could help cover a sizeable distance in your entrepreneurship journey.
Consider Your Resources
Otherwise known as bootstrapping, this is when an entrepreneur uses his own resources to bring the business to life. This could be from their savings, their salaries, or even inheritances. You can also go ahead and use your credit card or plow back your money into your project. This is a very bold path to go after, and if your business does not take off, you might be dealing with a lot of debt afterward.
Using these tips, you can be able to navigate the world of financial help when starting a business.