Throughout your life, you will have dreamed of owning the business you have now. You may have hopes of taking over the world with your ideas, or you may wish to remain small and local, but in any case, you will need a substantial amount of funding to get your small business off the ground. There are numerous ideas out there which will help you kickstart your company into the reality you’ve always hoped it would become, but it can be a difficult task to sift through them all. This is why it’s best to take a look at the most popular ways small businesses start on their journey.
Fund it yourself
Some people are in the lucky position where they can fund their business themselves. If this is you, then you need to sit down with an accountant and create a plan about where your money can be used. This should include areas like marketing, commercial space, and employing staff. This way, you know that you are not funneling your money into a project which hasn’t got the tools to become self-sustainable, and it won’t be an investment you will regret.
Think about investing
If you have a spare sum of money waiting to be used to fund your small business, but it isn’t quite enough, then you could always consider smart investments. If you have never looked at stock markets and emerging trends before, then it’s wise to steer clear of this option, as you don’t want to risk losing your money. However, if you are confident, you can use lots of online tools and apps to help you make your money go furthest, where strong returns will help you on your way. Using technology to boost your business can help maximize your return if used effectively.
Apply for a small loan
Although applying for a loan can be daunting, it is sometimes the only way that businesses can start up. If your business is successful, you can always pay it back in small increments so that it doesn’t affect your overall profits by too much. For larger loans, you can look to banks to help supply you with the money you need, and for small ones, you should consider looking into a microloan. These are loans handed out by financial companies who want to help those in need, and if you want to learn more, visit this page.
Do a fundraiser
Fundraising has always been a popular way of getting money to start a venture, and this can also be applied to businesses. Where fundraising is used to rely on local people rallying together, you can now make use of social media platforms to extend your funding to a global reach. This will also help you gain brand awareness in your early stages, and gauge how much of an interest your product or service provokes. Some crowdfunding resources like Kickstarter are a great way to get people to invest in your product, rather than just donate to your company.
Apply for funding
Small businesses are lucky in that there are many larger companies and charities who want to help those who they believe in. If you sit down and research what types of funding you’re eligible for, then you may find you can get a large sum from a few organizations. This funding is usually in the form of grants, so you don’t have to worry about paying it back, even if your business thrives.
Seek help from other companies
Companies can help you with funding, but in more ways than one. Whilst they are known to give out charitable donations to similar small companies, they will usually take one under their wing in what is called an incubator scheme, where they allow you use of space and resources that you can otherwise not afford. On one side of these schemes you have vendor capitalists, who will offer huge sums of money for a large share in your company, so make sure you think carefully before you commit.
Take on another job
If you have a lot of free time on the side of building your small business, then it’s wise to keep a part-time job, which will give you a steady flow of income to live on. If you manage to find a part-time gig that pays well and gives you flexible hours to choose from, you won’t have to worry about taking time away from your business, especially as this job will be helping to fund it.
Sell items you don’t need
If you know that your home is full of valuable belongings that you never use or have no attachment to, then you should consider putting these up for sale. Jewelry can go to pawn shops, where they are often on the hunt for gold, and other items you could run by vintage buyers or online stores such as eBay. This will hopefully give you an extra pile of cash to help you with day to day running.
Look for a partner
Many small businesses start out with one person running them, which is admirable but can also be a huge struggle from day one if you lack in money and resources. Sometimes, it’s best to look for a partner who believes in your company as much as you do, and who is willing to invest their money into helping it get off the ground. Partner relationships differ, but some will take an active role in helping, while others will be happy to fund it for a stake in your business.
Put time into finding investors
It will often be a number of investors that supply the money to a budding business. Though having a lot of these will mean you must give away small shares of your business each time, it will help you make a name for yourself in the early days. It will also ensure that you have the money and the drive behind you, as you will want to make your investors proud as a way of saying thank you.