Let’s be totally honest, as much any many of us would prefer it wasn’t the case, you simply can run a business without money. You can have all the drive, passion, expertise and commitment in the world and it’s not going to mean a thing if you don’t have any capital to back it up. There have been plenty of extremely promising startups that have floundered because, despite having a fantastic product, they simply didn’t have the ability to support themselves financially. The problem is, money doesn’t just appear out of thin air, so how to you raise funds for your business? Well, the truth is that there are actually plenty of different things that you can do in order to raise money and keep your business solvent and afloat. Here are just a few of them.
Pay out of your own pocket
A lot of small startups eventually come to the realization that, at least in the short-term, they’re going to need to be “self-funded.” This means that you’re going to need to start looking at money from savings accounts or credit cards. If you’re going to use a credit card in order to fund your business, then make sure you choose one with an extremely low-interest-rate. The last thing you want is to end up losing out on profits because you’re paying off huge amounts of interest.
This is more of a long-term strategy, but it is one that can be extremely effective. By investing your money elsewhere in places that aren’t quite as high risk as a new business, you’ll be able to get hold of a decent amount of capital without having to dip into your personal finances. Property is one of the best options since it’s an investment that doesn’t necessarily need to eat up all of your time. Whether it’s a commercial triple net or residential property, there are plenty of options out there for every type of potential investor. Just remember not to get over ambitious, remember this is a way of funding your business, not a new career path for you. If you start to sink too much time into your investments, then you’re going to end up getting pulled away from what really matters: making your business a success.
This can be one of the best options for generating funds for your business, but it can also be one of the trickiest. Angel investors are individuals who are willing to invest in your business in exchange for things like convertible debt or shares in the business. In order to court investors, you need to have the clearest possible idea of your business. You’ve got to know each and every detail of your business plan down to the smallest thing. If investors don’t feel like they can trust you with their money, they’re just going to end up keeping to themselves. If you can show them exactly what they can get out of investing in your business then you’ll find yourself in a much more advantageous position.