Have you ever had that billion-dollar business idea but you don’t have business funding? Perhaps it’s a cool app you want to create or a unique café concept. You certainly need a lot including a website, office space, staff, etc. More importantly, you need cash reserve that can pay at least 6 months of your overheads. Don’t lose hope because there are quite good but overlooked places to get the funds you need!
Business Funding Idea #1: Bootstrapping
This is the first option that entrepreneurs have when starting their own business. Bootstrapping simply means utilizing all the personal funds you have. Sources include your savings accounts, credit cards, and whatever equities you may have. I recommend doing this especially if you don’t like to deal with paying other loans.
Business Funding Idea #2: Ask Help from Family and Friends
Seeking financial assistance from family and friends might be an uncomfortable idea. However, this is another good option before acquiring external funding. It never hurts to ask for help anyway. Take note though that it is best to have a business plan handy.
Discuss your business idea with them – your product or service, how you plan to sell them and how much income you project. This will make them understand you easier and perhaps hand you some startup cash.
Business Funding Idea #3: Try Alternative Funding Sources
Micro-loan organizations are perfect for entrepreneurs and startups if you only need a small amount of money ranging from $25 to $5,000. Check out if you qualify for a micro-loan at Accion and Kiva. They cater to low-income individuals in the U.S. who want to start a business or work for social good.
Business Funding Idea #4: Crowdfunding
Crowdfunding is increasingly becoming popular for business fund generation. How do crowdfunding sites work? There are sites like Kickstarter and IndieGoGo where you can raise funds for a business idea. First, you must set up a campaign then indicate the target amount you want to raise. You also need to specify a time frame for your campaign. Kickstarter will only let you get the money once you reach your target amount. IndieGoGo will let you withdraw whatever funds you gather for a fee.
Business Funding Idea #5: Work with SBA
There are 63 SBA’s (Small Business Administration) across the country. This entity can connect you to entrepreneurs and angel investors who can help finance your business idea.
Business Funding Idea #6: Get Bank Loans
You can also try bank loans after gaining some traction and perhaps starting to earn out of your business idea. You can go check if you already qualify for a traditional bank loan. Extra funds certainly help scale up your business.
Get Help with Business Funding Today
Sometimes, knowing your options is still not enough. You may need the help of a business coach to execute certain business processes. The same holds true in seeking funds for your business. Schedule your 1-on-1 business consultation with me today and let’s discuss funding options for your business idea!