6 Ways to Get Capital to Start Your Business

Featured article by Jack Dawson, BigDropInc.com

Money makes things happen, including starting businesses and development of projects. Many entrepreneurs who have lots of money saved up face one challenge– getting a viable idea. On the other hand, many entrepreneurs who have the idea lack the money to start the business. You only need to watch TV shows like Shark Tank to get the disparity. Indeed, getting financing for your business idea can be a really frustrating activity. You have an idea, but you lack the capital. Depending on how you present your idea to prospective investors, they will either give you the money or turn you down.

One very common method that has been employed since time immemorial is taking up bank loans. It is still a popular method today. As a matter of fact, many people will first think of their banks before they can consider the other options discussed below. The problem with bank loans is that they are really difficult to secure. At the same time, governments are running programs that encourage entrepreneurs to start their own businesses. However, this too has its challenges. It is a very competitive world out there. Getting the financing is very difficult.

Therefore, what are the options that are left for your consideration? Saving is a good option, but not if you want to get the business up and running in a very short time. Here are some alternatives that might come in handier than the bank loans.

1. Online lending

What would this world do without internet technology? There are just so many things that you can do from the comfort of your home including getting a loan to start your own business. These are usually short term loans that are designed to help people get their projects completed effortlessly. Whether you want to buy a car or you just need a few thousand dollars to start your business online, loans are a good option. Application takes less than an hour and, within a few days, you will get a reply on whether you have successfully secured the loan. If you have, you get the money as well. A bank loan will take weeks to process.

2. Product presale

Many people are focused on selling products after they have launched. They want to do heavy advertising before they start selling the product. This should not always be the case. Selling your products before launching can easily get you some good money. It has its challenges, but then at the same time, it does give you the money to start your business, and that is what you are looking for, right?

3. Factoring advance

Services such as invoice and factoring advance can help ease out the process of starting your business. A service provider will front you the money on invoices that they have billed out. You will then pay back this money once the customer has completely settled their bill. These advances are famed for allowing companies to close the payment gap between payments to suppliers and the billed work. By closing this gap, companies can accept more projects faster. In other words, it can bring in a lot of money.

4. Friends and family

This should probably have been number one. It is a great alternative to taking up a bank loan. You get to save a lot of money that you would otherwise spend on interest. If you have friends and family members who are willing to spare some cash for you to start a business, then you should not burden yourself with a bank loan. There are no contracts from a bank to worry about and you will easily get the work done.

5. Double dipping

Running a side business is one of the best ways to get funding for your startup. It is commonly known as ‘double-dipping’ and it can easily bring in money for just about any project. What extra skills do you have that can make you some extra money aside from your job? There are people who work as secretaries, but at the same time they do freelance writing which makes them some good money on the side. If you do not want the hassle of looking for investors and you have time before you can start your business, then this is a good savings strategy.

6. Selling assets

This means that you will have to let go of some things that you do not use as well as those that you use regularly. This is a way of sizing down on your expenditure. If you have a car that spends gas worth $500 every month, then you might want to get a better option that allows you to save up on this cost. Selling the car altogether will give you the money you need to start your business. There are all sorts of assets that you can sell including the furniture stashed away in your garage, the extra home that you will never use and such things.

Conclusion:

Initiate your capital hunt with an excellent business plan with the aim of showing potential investors your company’s potential. Follow that with comprehensive facts of the resources available and strength of mind to make your business a reality. This will definitely help you to find a source that best fits your capital needs.

Author Bio

Jack Dawson is a web developer and UI/UX specialist at BigDropInc.com. He works at a design, branding and marketing firm, having founded the same firm 9 years ago. He likes to share knowledge and points of view with other developers and consumers on platforms.