| |
Alternative Ways to Raise Money to Start a BusinessRaising money to start a new business can be a real drag. The fact of the matter is that very few people have the resources to fund a new business on their own. And to complicate matters, because of the buy now pay later mentality we have in the US today, consumer debt is at an all time high. This has resulted in many people living well above their means. When things come crashing down, so do the credit scores.
So very simply put, it means that because many people are unable to get a conventional loan to fund a new business, entrepreneurs have to find an alternative means of funding the business. There are ways to get the money you need; you
just have to be creative, diligent and resourceful.
One of the most popular means of getting the money you need to start a business is to go the government grant route. If you have watched any television at all, you have seen the commercials and infomercials offering books full of resources that will supposedly get you a grant. What you are not told is that it is a very long, tedious process that many entrepreneurs fail to follow through on. You can most definitely get a government grant if you put in the time and energy that is required. I would recommend getting with your local small business association. They can help you draft a business plan and get your grant proposal in order, both of which are of the utmost importance.
If you find that going the government grant route is not for you, there are other things you can do. Take the time to look through the yellow pages under investment services or investment companies. Small Business Investment Companies lend money to new businesses that they believe has a good potential to make money. This can be a particularly good way to go if you need a substantial amount of money. However, in many cases these companies will exchange a loan for a small interest in your company. Do your research; this can be a good way to go for some types of businesses.
One very overlooked source of startup income can be life insurance policies. This might not be a liable option for everyone, however money is usually available to anyone that has savings features on their policy.
Angel investors and venture capitalists are another way to go. The only drawback is that their services are probably the hardest to find. Along the same lines as venture capitalists is a website called Prosperity. This site was even featured on Oprah and is one of the best sites I could find that can help virtually anyone get the funding they need. No matter what your credit is, there are people out there that will help you. Prosperity is designed for the everyday Joe to get a loan through a network of everyday folks. Instead of one organization or company funding your loan, many people pitch in a little and fund your project or debt. It is a very innovative concept and very much worth the time checking into it.
If your start up costs is minimal, why not try some creative fundraising methods. Advertise that you are looking for an investor in your local paper or even in the want it section of Ebay. Join as many small business forums and groups as you can. There is a wealth of information floating around and you might just pick up a great tip that you can use. |
|
|
|
|