6 Creative Ways to Fund Your Startup That You Probably Didn’t Consider

Effective Ways to Fund a Startup or New Business

Seed Money for StartupsYou’ve got a fantastic idea that’s likely to get consumers to line up to hand you their money. Of course, you just have one problem. You have no idea how you can raise the funds to bring this product to market. You know that you need to produce the product, create marketing campaigns, and even feed yourself in the meantime. You may not have a lot of wealth and probably would rather not hit up your relatives. What do you do?

Six Tips to Gain Startup Funding That You May Not Have Thought Of 

You already know that it will be tough to get a loan or attract an investor when you can’t demonstrate a track record of success. If this entrepreneurial story describes your situation, you might simply consider ways that other entrepreneurs managed to collect the seed money they needed.

#1. Fund it Yourself: The SBA says that most small business owners supply some or all of the funding for their new businesses. They may use personal savings or credit to get their idea off the ground. The advantage to using your own personal assets is that you retain control. Of course, you’ll also be taking a risk with your own credit rating and savings.

If you have limited funds, this idea can only take you so far. You might have to supply some or all of the funding at first, but you’ll probably grow faster if you can get some financial help from other sources.

#2. Barter for Services: Bartering might be the oldest form of economics, but that doesn’t mean people still don’t use it today. For example, your budding web design firm might build a website for a commercial property owner in exchange for some shared office space. You might also ask for services as a prepayment for a product that you plan to design.

If you’re not sure how bartering could benefit your startup company, you might check out a site like U-Exchange at http://www.u-exchange.com/businessbarter.

3. Work With Equipment Manufacturers, Distributors, or Suppliers: Do you need expensive equipment or supplies to get started? Here’s something that people who are already in business might know that you may not realize. Some of these providers will advance you their products as a loan to get you started. You’ll have to pay them eventually, but they may let you have months or years.

4. Crowdfunding: There are different kinds of crowdfunding platforms for new and small businesses. You might get a loan, solicit donations, or even find an investor this way. You can also use your own social circle for more informal crowdfunding. For instance, you might offer future discounts, free stuff, or even a stake in your company. This is a lot better than just hitting up your friends and family for money.

5. Moonlight: You might not quit your day job. If you have to run your business during the day, you may need to find a way to earn grocery money on the weekends or at night. Lots of great business started as side businesses, and this approach can relieve you of the pressure of earning an income while you are trying to get your startup profitable.

6. Get a Sponsor: You might be able to interest a large company in your great idea if your business model can help support yours. Large corporations actually offer grants, hire other companies on contract, or even buy pieces of smaller companies.

How Will You Get Seed Money for Your Startup?

These suggestions only represent the tip of the iceberg for entrepreneurs who have more ideas than money. The list wasn’t intended to be exhausted, but it was meant to help you spark your own creative ideas.

 

 

 

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