Ready to start a new business? It’s one of the most rewarding and most challenging things you’ll ever do. On the one hand, building a business from the ground up is filled with excitement. On the other hand, there are a ton of unknowns that can make it scary to get started. While there are plenty of things you need to do to start your business, one of the most important things will be figuring out how to fund your idea. Some are easier than others.
If you can do a bakery out of your kitchen for a time, you can easily pay for new supplies and build as you go. But when you need a storefront, expensive supplies, or to hire someone with unique expertise, you’ll probably need to raise some capital. Here are some creative ways to fund your new venture so you can be poised for success.
Host an Auction or Raffle
For local businesses, this is a great way to raise awareness about your business while supporting other businesses. If you get gift cards and other services donated from the other businesses, you can keep the amount they are auctioned off for. You could also sell raffle tickets for people to win great products from local businesses. It’s a fun option if you’re into event planning.
Get a Business Partner, or Two
You might have an amazing idea, but no money to make it come to life. A business partner or two might have money, but no good ideas. It’s a perfect match. By leveraging the resources of a business partner, you can start funding your business so it can start making money.
Use a Crowdfunding Platform
Crowdfunding is a newer way to gain funding for almost any business idea. When you have a product-based business especially, you can get small amounts of money from a lot of different people to bring these products to life. These small amounts add up over time and can lead to big money to start your biz. Not only can crowdfunding help you start your business, it also helps you gain a following of future customers who might like and share your products.
Pitch to Investors
If you’re dreaming of pitching to the sharks in the Shark Tank, then you’re probably an entrepreneur. But while slots on the show might be limited, there are contests and opportunities to find and pitch to investors all over the country. These investors, much like the sharks, look for viable business ideas to invest in so they can increase their business portfolio and help small businesses get off the ground and thrive.
Use a Low-Interest Credit Card
Once you can get a business credit card, it’s not a bad idea to put essential supplies on the card to help you get started. It’s a lot like using starter loans for personal credit. These business credit cards provide much-needed credit to help your business establish itself. When your business has a good credit score, you become eligible for bank loans and leases when you’re ready to expand.
You may not think a yard sale can be lucrative, but when you need cash to start your business, you’ll want to use every tool in your arsenal. Get rid of all your excess stuff and make some cash while you do it. Leverage Facebook Marketplace, OfferUp, EBay, and other sales apps to get your items out in front of the right buyers. Selling stuff is not only satisfying for decluttering, it’s also a way to make money to fund your business.
Beg Your Family and Friends
This one is saved for last for a reason. Asking family and friends if they want to help you start your business is risky. You don’t want to cause any issues, but often friends and family are happy to help if they know you need it. You’ll want to be clear about expectations and if the money is a loan, an investment, or some other kind of offer. While begging may not be necessary, simply asking the people closest to you if they want to be involved with your business venture should suffice.