Unconventional Ways to Raise Money
Without Investors or a Loan
One of the biggest hurdles business owners have to face when starting their company is acquiring the initial funding. Oftentimes, people are taught very traditional ways to raise the money needed for their business. These methods typically include: taking bank loans, opening a line of credit, or even hunting for prestigious angel investors. These methods aren’t wrong, but truth is told, they’re not completely always necessary. We’re here to present to you some easy, and efficient ways to raise money for your startup.
1. Work Part-Time/Full-Time
Having a consistent stream of income from another job is an excellent way to generate cash flow for your small business. Take a small percentage of each paycheque, and place it into your business so that you can generate a sufficient amount of capital to get the ball rolling. Depending on any additional bills you already pay, taking anywhere between 15%-40% of each paycheque and investing it into your company saves you from inquiring any unnecessary debt.
2. Friends & Family
There are a no better group of people to help you in your new venture than your family and close friends. This incredible resource is most times ignored by many entrepreneurs because of potential risks to the relationship. In order to minimize potential strains on the relationship, it would be best to request that these individuals help the business complete specific purchases or business payments. This way there is no direct cash flow exchanged. These acquisitions/payments could include anything from paying for the domain name of a website to purchasing the first batch of inventory.
3. Crowdfunding Platforms
Crowdfunding has become very popular in recent years. Sites such as Indiegogo and Kickstarter offer readily available platforms for companies to raise money at a relatively low cost. Crowdfunding is best used for short-term investments. You start by setting a goal for the amount of money you need to be raised over a specific period of time. Afterward you start a campaign, and then people (family, friends, and strangers) will pledge money towards your campaign. Crowdfunding campaigns that utilize both video presentations, and social media often yield the best results. Other crowdfunding sites include GoFundMe, Crowdrise, SellABand, and Razoo.
4. Leasing Out Assets
Whether it’s the equipment you constantly use or barely use, allowing other individuals or companies to rent your physical resources is an excellent way to raise money. Let’s say you have a very nice camera, and you know of a photographer who is in need of one for a photoshoot, then you could lease it to them, and place the money you earned back into your business.
5. Selling Digital Products
If you’re searching for where the entrepreneurship market is headed, look no further. There are a plethora of digital products your company can sell to raise more capital. These products include Email templates, pitch notes, website themes, resume templates, and photos to name a few. It would be hard to find a company, not in need of digital products. The key to selling these products is no different than selling anything else, and that key is strategic marketing.
6. Tactical Partnerships
You can’t be successful by yourself. Strategic partnerships are brilliant. Find a company that would be willing to work with you on deals for potential clients. One example is to agree to referral bonuses, where every successful referral you give to your partner company, means $50 given to you and your company. Deals like these allow for businesses to grow together, while also establishing and maintaining a healthy relationship that could be even more beneficial long-term.
These are just a few of the many ways you can easily raise money to help fund your business without having to borrow in any way.
Really helpful!