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Raising Money When You Want to Start a Small Business

StrategyDriven Managing Your Finances Article | Raising Money When You Want to Start a Small Business | EntrepreneurshipStarting a business is a common dream, and while you may only need a small investment to get off the ground, it can lead to big things. However, getting that initial seed money can be difficult, especially when you’ve still got rent and bills to pay while you wait for your first profit to arrive. That’s why you need a plan to get your business going, so here are some ideas.

Find Cryptocurrency Investors

While there are a number of platforms where people can invest cash in startups, you’ll find that people are very cautious about giving cash to inexperienced business owners. However, in the world of cryptocurrency, people tend to be more open to taking risks. Putting together an Initial Coin Offering, or ICO, can be a good way to get the money you need to kick things off, and the more unique and exciting the service, the more likely you’ll get funding.

Invest and Raise More Cash

If you’ve saved a little money but need to raise more, you may want to consider investing in and trying to get a return on your cash. For example, you could use Genesis Mining to mine Bitcoins, which you can then sell on an exchange, potentially making a profit. As with any investment, you should do your homework first and ensure you aren’t taking any unnecessary risks.

Sell Things You No Longer Use

A lot of people have things hanging around their house that they no longer need, so why not sell your old items for cash? You may be surprised that you can make hundreds of dollars in just a few days when you list your items online, and as long as you use clear photos and write a decent description, you should get a buyer.

Get A Loan

Understandably, a lot of people are worried about accumulating debt before they even have their first customer, but if you’re starting a business that needs a lot of specialist equipment or supplies, then it is often necessary. Put together a business plan, outlining what you need to borrow and when you expect to turn a profit. This will help impress banks and potential lenders, so they can see that you’re serious.

Scrimp and Save

A lot of small business owners start their ventures by using their own savings. While it’s a big risk to use the money you’ve so carefully saved, at least you don’t owe anything to a bank if things go wrong. Look at what you earn versus what you spend and see where you can boost your income or cut your expenses. You could also start your business as a side hustle with very low expenses. If you do something creative, look out for ways to do it more cheaply, such as finding bulk supplies or buying different equipment. While you won’t be able to quit your day job right away, you can at least start to build a customer base, which in time could take you to the next level.