8 Ways to Fund a Business
You have big dreams and got everything mapped out, so you can start achieving them. You have a promising business in mind and is excited to start. The thing is, not everyone is blessed to have the funds ready to start whatever business and whenever they want. Most people will languish in employment for a few years to save up. If you don’t have the money and can’t wait for years before you can start the dream business, here are eight fund sources to consider:
1. Sell personal properties
If you have inherited or in possession of valuable properties like land, cars, a boat, or vacation houses, you can sell them and use the proceeds to build the business you want. Have a good look at and review the properties listed under your name and sort out which ones you can let go of and which will be more useful to you when kept or used rather than disposed of. You can auction off antique jars, paintings, jewelry, designer shoes and bags, and collector items like vintage caps and tees.
2. Lease
If you can’t afford to sell your properties for some sentimental and other personal reasons, or if you are not the sole owner and the other owners are not agreeable to the idea of selling, you can have them rented out. Some entrepreneurs started by leasing out their homes and moved out to live in a less spacious and less costly apartments temporarily. A rather small sacrifice to achieve a bigger win.
3. Get partners
Maybe what you have in your bank account is not enough. But if you team up with some of your friends and/or family members who have the same business interest in mind and the cash you need to start the business, you can work together and start your business. However, you will have to be open to the fact that you will not be the sole proprietor and have total control of that business.
4. Bank loan
Aside from selling or leasing properties, you also have the option to apply for a business loan at the bank. You can use some of your properties as collateral to ensure a faster assessment and approval of your loan application. Another way to ensure approval is to have a presentation of your business plan and its profitability.
5. Micro loans
There are small lending companies who cater to providing loans of smaller value. They are not banks; hence, they have fewer requirements through the amount they can grant is also significantly lower. You have the option to reach out to several microloan companies and gather enough until you reach the sufficient amount needed to fund your business.
6. Love IOUs
Borrow from family and friends who might be able to offer lower or even zero interest debts. Not everyone will have a business-oriented and supportive network of family and friends, therefore, it is important to have your feasibility study and business plan printed out to ensure they will have a visual reference to the moneymaking concept you have in mind. The readier you appear, the easier it will be for you to earn their trust.
7. Crowdfunding
Most business startups were financed through crowdsourcing. Crowdfunding is another efficient and quick way to fund a business. There are many crowdfunding platforms online and offline local to your area. Start by asking around in your community of any organizations that could help finance your business. Online crowdfunding platforms are also a viable and safe way of sourcing funds. Just be careful when putting out your ideas as your business plan would be open to the public, risking copying and stealing by others who are just looking for business ideas.
8. Look for investors
You can also shop for investors. There are lots of investment firms and individuals who have enough funds and are always on the lookout for great business ideas and investing opportunities. However, these are seasoned investors and business experts, so, you will need to work hard to get them to invest. Carefully prepare your business pitch, discussing not only the product and its merits, but the entire feasibility study of the business.
