The lack of startup capital is the primary reason why most people fail to go after their dream of being a business owner. Getting the money you need to start a business may seem impossible, but there are ways to get the funding you need to start your own business.
Sometimes getting the money you need requires some creative thinking and a lot of determination and perseverance. The truth is that no one is just going to drop the cash in your hands and send you on your way.
If you want to be a business owner, you have to put in the work. When traditional methods fail, try the untraditional. Here are nine less traditional but realistic ways to fund your startup and get your business off the ground.
Save the Money
Saving money is a time-honored way to fund a startup. Suppose you have a good job that pays well, set up a savings plan where you can save the money you need to fund your startup. Set a goal date for when you want to start your business and save money each time you get paid.
Borrow From Friends and Family
If you have a large family or some of your family members have extra funds, ask them for a loan. You can offer them a small stake in your company if they need further persuading.
Enter a Contest
Many local cities are teaming up with SBA’s and corporations to sponsor contests to support and grow new businesses. To win a contest for a new startup, you have to have a solid business plan, a good product or service, and a good pitch. Find a contest with guidelines that suit your business.
Find an Angel
An angel investor is someone who will trade investment capital for an equity share of your company. Many angel investors are business owners or former business owners themselves and have a vested interest in the success of your business.
If you have a unique and innovative product or service and are a social media guru, crowdfunding may be the right way to find startup funding. Crowdfunding is a process to raise money from a large number of people to fund a business, project, or support a cause.
Make a Trade
If you have a particular skill or trade, consider trading some of your services or skills for a small business that you’re interested in purchasing.
Get a Loan Against Collateral
If you’re lucky enough to own an extra car, an RV, or a boat, consider selling them for startup capital or using them as collateral for a loan. If you need resources for finding a personal or business loan, check out Lantern Credit. Lantern Credit’s knowledge and expertise can help you find a quality lender for your new business.
Go for a Grant
Believe it or not, there are many government grants aimed at creating new startups, minority-owned businesses, women-owned businesses, green businesses, and many others. Lantern’s picks for business grants for small businesses are great places to start your search for a grant to fund your startup.
Applying for grants is time-consuming and detailed. According to Lantern Credit, it’s “helpful to familiarize yourself with grant requirements before you start wading through the weeds of the application process.”
Invest in a Partnership
A partner may be able to bring in the funding you need to start your new business. Look for a partner with the capital you need and one that’s reliable and trustworthy and has a good history of working relationships.
Starting a new business is fun, exciting, and scary all at the same time. But funding a new startup costs money. If you’re serious about starting a new business, you’ll do what it takes to get the funding you need. A good beginning is a strong business plan. Once you have a business plan on paper, you can move on to finding the right source of funding to launch your startup.