Everyone has at least one brilliant business idea at least once in their life. The problem is most people are not in the right position, financially or mentally, to follow through on the inspirational idea
After all, starting a business means creating a business plan and having enough money to get the business up and running. It can be quite daunting considering how to raise funds for the business. The good news is that many modern businesses don’t need a large pot of money. You can start at home with the bills minimized and expand as the business grows.
With that in mind, you will find it is much easier than you think to raise the funds for the business. Here are seven easy and effective ways to get cash to start a business:
1. Garage Sales
Everyone has items in their home that they no longer use or need. Although it may not be of any use to you, that doesn’t mean that it isn’t any use to others. Having a garage sale is the perfect way to get people o buy your old items.
All you need to do is be ruthless, look at all your items in storage and everything around your home. If it doesn’t have sentimental value or hasn’t been used in the past year, it’s time to get rid of it.
You will be surprised at how much money you can make by selling old items.
2. Talk to Family
Another good way of raising the capital you need to start your business is to talk to your family and closest friends. They may be prepared to lend you money, donate toward your goal, or even invest. In return for their monetary donation, you can give them a free product, percentage of the profits, or anything else that seems appropriate for the size of the donation.
Of course, it can get complicated when borrowing from family. Make sure you have a proper contract created and keep your part of the bargain.
3. Crowd Funding
Another popular way of generating cash to start a business is crowdfunding. People effectively donate your new business money. Instead of repaying them with cash, you need to repay them with a reduced rate for your product.
Crowdfunding is a particularly effective approach when you are dealing with a new product you want to bring to the market.
4. Sell Expensive Items
A great source of funds is probably parked on your driveway. While everyone likes to drive a nice car, they are expensive. Nice cars are generally associated with success in life. However, it is worth forgetting what others think and downsizing your car. A smaller, slightly older version will give you a pile of cash in your hand. That is potentially enough to get your business started.
5. Small Business Loan
A business loan is probably not the first choice for most people as it adds pressure to your new business.
But, it can be the only way of getting the funds you need to invest in a business and generate your product.
You will need to balance the pros and cons of taking a business loan. There is no right or wrong answer, just what works for your business.
It can help to create a new income stream, such as by renting your driveway space or garage. This can cover the cost of a small business loan and help your new business get off the ground.
There are plenty of people looking to invest in start-ups. All you have to do is prove your business has potential and people will invest. Of course, they will want something in return. Most investors either want their money back with interest in a set period or they want a share of the profits/business.
If you find an investment deal you are comfortable with it is a great way of getting your business off the ground.
7. Freelance Consulting
Finally, you can raise additional funds yourself by offering your own services as a freelancer. You should pick something that you are already good at and offer it locally or globally online. If you have expertise in a specific field you can be paid a considerable amount of money.
However, it can be difficult to freelance while starting a business. That’s why it is best to freelance to get the money you need first.
It should be noted these are only a few of the ways to get cash to start a business. With a little imagination, anything is possible!