Most Creative Ways to Finance your Startup
20 Jan, 2016 / Comments: Comments Off on Most Creative Ways to Finance your Startup / By admin
If you have the “next best idea” to create a booming business, the only other thing you need is the capital to start. This is the stumbling block for many people that do not have adequate liquid assets to get things going. Luckily, outside of savings accounts and personal loans, there are many creative ways to get the funds you need and to let the world see your true potential.
Sell your Product Before You Have It
This might sound risky, but if you have a product that creates excitement in anyone you talk to, consider it as an option. Pre-sale of your products helps you to get the money you need to get the inventory and sell your products while giving your investors something in return. Think of it as the opposite of Crowdfunding where you ask potential investors for money to get your business started with nothing in return. With product pre-sale, you guarantee your customers you will provide them with the product – they just need to order and pay ahead of time. There are various websites, such as Kickstarter, that allow you to describe the product, give a shipping date, as well as any other information necessary to entice people to contribute to your cause.
Sell Stuff on eBay
If you have assets lying around collecting dust, why not sell them and use the money to start your business? They could be as large as an old car or small items you have stored in your basement “just in case.” Antiques, furniture, sporting goods, and even toys can all be someone else’s treasure. EBay is a great resource to get rid of these items and have the money to get your business started. Before you start selling on this platform, make sure you have quality pictures, know how to write the perfect description, and time it just right so that your target audience will see the items and start a bidding war.
Barter your Services
Bartering, otherwise known as exchanging, is a great way to get something you need while giving the other person involved something they require. For example, if you need office space, maybe you can exchange use of the space for your cleaning service (cleaning the entire space including the area that is not yours). Consider the services you offer and then think of the business that would benefit from them the most and see what you can exchange. If you offer computer services backup services and need graphic design, you could exchange your software backup services with their artistic abilities, giving both businesses what they need.
Give Equity in the Business
If you are unable to pay for a service that you need, why not give a small portion of equity of your business away? If you already started up, but you need a functioning website or advertisement plan created, consider bartering with these types of businesses. If they are vested in the success of your business, they will make sure the services they provide you are superb, giving you the ability to succeed while using their services. As an added bonus, with the continued vested interest in your company, you have their service at your side whenever you need it.
Find Investor Groups
Every area has a group of investors willing to fund startups for the right reason. These “angel investors” pick and choose among a variety of start-ups to fund. You simply need to create a profile on a website, such as Gust, and find a way to stand out. Create a pitch and market your team to see who is interested in what you have to offer. Thousands of dollars’ exchange hands on a daily basis – you will not know if you will be a lucky recipient unless you try!
Getting the funds for a start-up is not easy, but with a little creativity you can get it! You have to step outside of your comfort zone and find someone willing to put their faith in you. The key is to not give up – keep trying until you find the money necessary to make your dreams a reality.