You don’t need to be a financial expert to realize that there’s something wrong with the economy, and traditional solutions aren’t working anymore. Things keep getting more expensive, and wages are steadier than ever. More and more people are starting to realize that the answer isn’t a 9 to 5 job, and if they want a more secure future, they’ll have to do more. Investments are becoming more popular among the middle class, and people are starting their own businesses everywhere to secure a better future for themselves and their families. Yet, it’s not that easy, and to start a business, there’s much that needs to happen. The first problem most encounter at first is how to fund their small business, because you are going to need some form of capital to do that. It’s not easy, but it’s definitely doable, and this is how you do it.
Do it yourself
Might seem like a no brainer, but your first approach to funding your project should always be doing it yourself. This can keep you going for a while until a more extensive source of funding comes along, but it can definitely be done. You can do so by going through your assets, if you have any, and selling whatever you can of it to get that initial boost needed to get the business going. This is why saving from an early age is always a great thing to do. That can include a savings account, some gold you have stored, an apartment somewhere or a piece of real estate that can get you some money, and so on. You could also resort to zero interest credit cards; it’s definitely not the easy way out, but it’s your own project and you’ll need to invest in it one way or another at some point.
Crowdfunding has been quite the popular approach to starting businesses over the past few years, and plenty of companies are doing it and are killing it through crowdfunding campaigns. If the project is creative enough, and has enough promise to it, you’ll find that plenty of people are willing to help you. Sites like Kickstarter.com can help you get to your end goal of a starting capital, and they’ve funded hundreds of projects since they first came to life. It isn’t exactly a long term solution though, and it’ll only get you started, but you’ll have to make your own way after that.
You knew eventually this one would come up. Nobody likes taking loans from banks, but sometimes they’re the only option you’re going to get. Fortunately enough, lending restrictions are not that tight for all banks. Some offer easier rules and procedures, but you never know what comes with that. Bank loans aren’t your only option though, you can get an inheritance advance on that money that’s taking months, maybe even years, to get processed in the courtrooms. Probate is the legal process in which assets are transferred from a deceased person to their heirs, but this happens through legal proceedings through a court which decides if all things are in order and who should get what. The option of an inheritance loan can come in handy, and after you finally get your inheritance, you can pay it back.
While some people don’t like bank loans for their high-interest rates, they might not also have any impending inheritance. But there’s another option of title loans, which is basically when you give up ownership of your car or vehicle title, temporarily, and you get an amount of money for it. Title loans have a lot of pros and cons, but one of the most important pros is the fact that the lenders don’t put too much weight on credit history. You might have to pay higher interest rates in that case if you have a bad history.
Friends and family
There’s always the option of borrowing money from friends and family, and it’s probably one of your easier outs. Unless your family consists of some seriously bad people, it’s highly doubtful that they’ll charge you for interest rates, or put you away if you’re behind on payments.
Angel investors and accelerators
This is probably how most startups get their money these days, and it’s one of the most eloquent paths you could take to raise money for your startup. You need some really good connections and a powerful, scalable model to reach out to either, though. An angel investor is a person, or a company, that will basically give you the money in exchange for owning a piece of your business. So, they need to see that your business has potential and can actually grow into something big that will make their investment worthwhile. The same goes for accelerators, as they also own shares in the company in exchange for initial funds. This is why the process of planning out your business and having a solid plan for the future will come in handy when you do need the money.
Startup contests are also another excellent way to go about getting that initial funding your business needs. Some competitions only need an idea for an entry, but it has to be something really special. Others require a scalable and clear picture of how your business will unfold in the future. Whatever the case may be, if you do all the right things and get all the necessary details in order, you can get your initial funding without having to pay anyone back.
Plan ahead, work hard
The truth is, everybody wants to start their own business and make it as an independent entrepreneur, but very few actually make it. It’s a lot of hard work and sleepless nights of planning ahead to what might be your key to financial security. It won’t come to life overnight, and even if you somehow managed to secure the initial funding, you have to know what you’re doing. If you’re just winging it and hoping for the best, you’ll have very little chance of success.
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