Creative Ways To Raise Capital For Your Start-Up Business
You’ve got a great idea and are ready to launch your business.
You’ve done all the necessary research and understood the complexities of your business management.
The next step is now funding. One of the many things that may stop you from starting your business is lack of funds. There is no doubt about it that raising capital to start a business is an overwhelming task. But it is manageable when you creatively follow a certain set of rules for this purpose. The key is to be resourceful and focused on the right things during the process.
With that said, here are some creative ideas for raising the needed capital for your business
1. Host A Garage Sale
Hosting a garage sale can help to get you started in your business. While selling your possessions may seem a bit hard on you, you need to consider the brighter side of it. You are selling those items to be able to build your business which equals to you working harder to ensure your business succeeds. Before your sale make sure to add price tags to the items. Apart from making money you can also use this opportunity to advertise your new service or product. Make plenty of business cards or flyers to give to each shopper.
2. Rent Out Your Space
Perhaps you have space in your home that is ideal for mini occasions such as birthday celebration or other events, it’s time you let it work to generate income. Advertise it in papers and or social media, print handbills, tell your neighbors, etc. of its availability for use at a reasonable cost. Before you know it this can become one of your funding sources.
3. Consider A Quick, Short-Term Job
Taking on contract work can help to fund your business development. For instance, babysitting, house-sitting, dog-sitting, etc. are among the several contract jobs you can do for a couple of weeks to earn extra money for your startup business. You can advertise at any dog care center as a dog-sitter and may probably end up getting customers out of the deal. Use creative means to keep your expenses low but most importantly make sure any job you opt for is something you can do professionally.
4. Release The Clutter
Whether it is a useless furniture piece, a dusty electric guitar, those kitchen appliances you have abandoned for years or any other items you aren’t using anymore in your home, make sure you sell them. In addition to making money for your startup business you will also be able to de-clutter your home.
5. Asset-Based Lending
This is a kind of loan against your assets, such as the account receivables. Once you have sales from creditworthy clients there are many financing companies that will factor your accounts receivable. This offers you upfront cash even though it is characterized by a high interest rate.
6. Use Your Assets
Many of us have high-value possessions and assets such as stocks, real estate, bonds, jewelry or valuable family heirlooms that you oft can survive without. These are good sources of capital since you can decide to either use them as security for a loan or sell them to raise the needed capital to start your business. Whatever the case it’s really about your priorities and your appetite for risk.
7. Bake Sale Locally
Setting up a bake sale is an amazing way to raise money for your new business. It is easy to organize and fun to do. You only need a small team that believes in your idea plus some planning and baking to have a successful bake sale of your own. With a well-planned local bake sale, the chances are you would have gotten most of your startup capital by the end of the sales.
8. Sell Some Items On eBay
Selling things like popular book titles, name brand kids’ clothing, etc. usually attracts a good price. You can attend library book sales and buy books for as low as 0.15 cents and then list those books for sale on eBay.
9. Start With Your Personal Savings
It makes a lot of sense to use your personal savings to start your business. If you have a brilliant business idea then it should not be difficult for you to put some of your hard-earned money towards it. Starting with your personal savings work greatly if you have other income source(s), no matter how little it is.
10. Family And Friends
This is one of the things to consider when you are looking to get capital for your new business. Do you have a family member who could offer you a loan to get started? How about your Mom, Grandma or that Aunt or friend who always said you would be great in your own business? Would they accept barter for the funding? For instance, would your Mom prefer to have her home cleaned? Does Grandma have items she wants to sell but does not have the energy? I hope you get the logic. Trust me, they will want to help you in any way they can.
11. Become A Product Tester And Get Paid
Using a relevant regulating body many countries now impose a strict rule requiring that manufacturers ensure their products are harmless for human consumption and usage before they are distributed to the market. To achieve this the manufacturing companies hire people to test their products. The pay differs greatly and depends on the product and the manufacturing company.
Having a positive frame of mind is very important in creatively raising the capital to fund your business. A part of being an entrepreneur is to be creative and it pays to use that creativity in financing your business.
Except if you’re already a millionaire the process of raising the capital needed to fund your startup business takes serious effort and planning. From any of the creative ways mentioned above we’d like to hear about your experience through the comment box below. Who knows, we might be changing a life somewhere.
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