So, you have a fantastic idea for a startup, you’ve done your preliminary research, found your market, and even put together a plan. Unfortunately, you’re missing the money you need to get the ball rolling. There are a lot of supposed entrepreneurs who spend years languishing in that area, ever looking for the money they need to be handed down from the heavens. That isn’t going to happen, so how are you going to fund your startup?
The traditional routes
Most businesses start by getting their funding as an investment from someone else. Whether it’s a bank loan, an angel investor, a crowdfunding campaign, or friends and family. If you’re going that route, be prepared for rejection. It can be hard to get people to part with cold hard cash. Know how to sell your business to different audiences, as well. Loans go to those with good credit history and a solid business plan. Angel investors tend to invest mostly in those who can show sharp acumen and market knowledge. Even your friends and family will need some convincing, so polish your pitch until it’s perfect.
Save, save, and save some more
Don’t expect others to put in all the work, either. You have to show that you’re willing to put your own money into the business and as much as you can safely manage. Having some funds of your own is going to help convince others you’re serious about making the business a success. So, create a budget, find as many ways to cut your expenses as you are comfortable with. Create a savings fund and pay your budgeted business fund into it every time you get paid so you don’t spend it accidentally, too.
Do you have anything you could turn into a passive or semi-passive income stream? This means making money without having to go out and work for it. Do you, for instance, have a blog that you could get into an affiliate partnership? If you’re willing to put in a little more work, could you rent out space in your home? Could you run an Airbnb? Or rent out your driveway? Find the passive income streams you already have and start making use of them.
Show off your skills
You might still be in employment when putting your business idea together and you’re not ready to quit until you have some indication you can get the wheels in motion. However, you can start freelancing on the side. If you’re running a business off providing a particular skill or service, then freelancing could even be something of a test run to see how viable your business idea is and to get some experience working for yourself instead of an employer.
No matter how you fund your startup, the key is to start building cash as soon as possible. Even if you don’t have all the time in the world and you’re not ready to talk to investors, find your passive income streams and streamline your expenditures brutally.
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