While you may dream of getting a giant handout from an investor on Shark Tank, most entrepreneurs know their dream of owning their own business requires getting financed in other ways. For some people, this means tapping into your savings. For others, it means getting crafty. If you are struggling with finances but you need capital to get your new idea off the ground, don’t fret. Here are seven ways you can earn money for your startup and take your business from idea to success.
Use your savings.
If you have a savings account, your business may require you to tap into some of this and put it toward your business. If your company is the success you hoped it would be, then you’ll be able to put this money back into your savings before you know it. However, there’s always a risk that you won’t get this money back should your business fail. Just keep in mind that using your savings is always an option and it’s what most entrepreneurs rely on to get their company off the ground.
Find an investor.
Even if you cannot get a big-name investor to give you money, you may be able to convince someone else you know to front the cash. For instance, some people take loans from friends and/or family members, while others look for bigger influencers throughout their community. Be sure to have a solid business plan created in order to share your information and thoughts with these potential investors. It’s also important to know how much money you want and what you’ll give the investor in return. Without this information, you’ll have a hard time getting people to give you money.
One way many entrepreneurs are gaining interest and capital is by opting for crowdfunding. Through this effort, you give away certain things, such as promotional items, to those strangers who invest in your company or product. This is a great way to not only get the funding you need, but to also market your business and generate some interest in it. Look into sites like GoFundMe in order to push your crowdfunding efforts out to the masses.
Sell your stuff.
Another way to raise some money is to sell some of your belongings and use that all to put toward your business. For instance, maybe you have old clothes or personal items you can sell to make extra cash. Maybe you can search for junkyards near me and bring in old cars, car parts, or other junk and earn some cash for it. You can also earn money by donating blood. There are many ways you can sell items to make extra cash to help your business.
Make extra money.
Being an entrepreneur means hustling, and sometimes this means doing what you can to make some extra cash. For instance, you can make extra money by taking on a second job or doing random errands around your neighborhood. Whatever you make, be sure to put that toward your business. This way, you can still ensure your regular earnings and/or paychecks will go toward your living expenses while extra can be used to fuel the business forward.
Sometimes making extra money for your business means cutting back on your current expenses. For instance, maybe you should consider selling your big and expensive house and moving into a condo or apartment. Maybe you should downsize to one car, get rid of that unused gym membership, or stop going out to eat every day. The more money you can stop spending on frivolous things, the more you can put toward your dream of becoming an entrepreneur.
Get a loan.
If you have a solid business plan, you may be able to take out a business loan from a local bank, credit union, or lending company. Most of these places will prefer you have been in business for two years, but some are willing to invest in startups with solid business plans. In addition, if you cannot secure a business loan, you may want to take out a personal loan. Just keep in mind that if your company doesn’t succeed, you will still be on the hook for paying back this loan. Make sure you understand the risk this could pose on your financial situation before deciding it’s the right choice to make.
Starting a business can be very rewarding but coming up with the money to get started can sometimes pose some insecurity. With these options above, however, you’ll have an easier time getting the funding you need to get your company started.