There are lots of ways to find money to fund your startup. Don’t give up on your dreams of starting your own business because you don’t have the money needed to get up and running. Try one or more of the following ideas.
1. Request a Credit Line Increase
If you have a record of on-time payments with your credit card companies, you may be eligible for a credit line increase. You could then use the extra credit to pay for the things you need to get your startup running. To get an increase, just call the toll-free number on the back of your card and ask for it. Be prepared to explain in general terms why you want the increase.
2. Get a Second Job
Sometimes it’s best to simply earn the additional money you need for your startup. One big advantage to this is that it’s your money; you don’t need to pay it back, and there won’t be any interest payments tacked on. If you think you don’t have time in your schedule for a second job, consider how much extra time your startup is going to take to get off the ground. If you have time for a startup, you probably have time to earn the money to get it going.
3. Take Out an Equity Loan
If you’re a homeowner with equity built up and good credit, consider taking out an equity loan. Equity loans are comparatively easy to apply for, and you can get funded in as little as two to three weeks, depending on your situation. Remember to calculate your repayment schedule and budget before taking this route. No startup is worth losing your home over.
4. Get Crowdfunding
Crowdfunding sites such as Kickstarter are designed for people just like you who have a great idea but no money to pull it off. If you’re willing to let the general public in on your business concept and ask for money on a public platform, you could be one of the success stories. Be warned, though, that you should take steps to protect your ideas before broadcasting them. Crowdfunding works best when utilized alongside a strong social media marketing campaign.
If you’re serious about your startup and you’re in a position to do so, consider downsizing your lifestyle to free up some cash. If you’re a renter, move to a smaller residence that will require less rent and lower utility bills. Get rid of your car payment by selling and buying an older model. Try selling off some household items that mean less to you than your dream of starting your own business. Downsizing now will not only give you extra liquidity, but it will ease the financial stress during those early years of running your startup.
6. Approach Venture Capitalists
If you need more money than you can get from a garage sale, consider approaching one or more venture capitalists (VCs). VCs are always looking for lucrative investments. Be prepared with a professional business plan, resumes of key players in your business, and a clear financial outlook that demonstrates how the VC will get their money back.
No matter what your initial cash position is, one of the ideas mentioned above is sure to bring in enough money to get your startup off the ground. Just be sure in the beginning about how much you need to raise so that you can choose the best option for your needs.
“Remember, wealth has nothing to do with money, success has everything to do with failure, and life is as simple as you make it!” – John Dessauer