One of the most difficult parts of launching a startup is having the money to get it started. There are plenty of business models that don’t require much to invest, however, startup costs and ongoing operational costs don’t just appear out of thin air. Many assume that the only way to see their dreams come to life is if they take out a business loan.
The truth is, although convenient for established companies, obtaining a business loan is typically not an option for startups. Not to mention, you’ll need financial statements (personal and business), tax records, good credit, and collateral. If your business doesn’t succeed (which is a risk you’re taking), then you’re still responsible for paying back thousands of dollars.
Rather than tie yourself to so much debt so soon, you might consider these alternative options for funding your startup:
Downgrade your spending habits – Your personal sources of income are essentially all you have to fund your dreams of a startup. You may need to review your personal budget and cut back on some of your spending habits. Stop eating out for the next three months, make your own coffee at home, downgrade your cell phone data plan, use coupons when shopping for groceries, and any other things you can do to save extra cash.
Apply for a cash advance – Cash advance loans online can be very convenient for helping you to secure cash for your business. You can apply using your personal information and if eligible would receive funds in a day. These funds can be used to register your business, pay down debts to free up other cash, or to build a website. You then have the convenience of paying it back over several months so you’re not tied to a long-term contract like a business loan.
Have a yard sale – If you look around your house you probably have a number of things that you really haven’t paid much attention to. These items may be nothing but placeholders or dust keepers for you, but to someone else, they could be worth a few bucks. Gather all things you don’t use or want and set up a few tables on your front lawn. Advertise with bright vibrant signage and begin selling things. You can even start spreading the word about the purpose of the sale so locals know about the upcoming business.
Try a grant – The government offers free grants to individuals looking to become business owners. As small business are what help to stimulate the local and global economy, government agencies are more than willing to help individuals create a business in a community where there is a real need. There are various steps to applying for a grant, but if approved, you won’t be required to repay a cent.
Become a freelancer – If you can’t foot the bill for your own startup just yet it doesn’t mean your dream has to die. You could essentially become a freelancer, contractor, or independent consultant until you’ve earned the money to launch a full-blown business. There are a lot less operational costs and can help you to start building a positive rapport and experience for your brand.
Invest in an established business – Last, but certainly not least, you could always consider the option to invest in an already established business. Becoming someone’s partner or taking over a business that’s already been through the beginning stages can sometimes be easier to afford than going it alone.
There are hundreds of thousands of people trying to live the American Dream and become business owners. If you so happen to be one of them, don’t let something like startup funds and operational expenses keep you from following your dreams. As the saying goes, there’s always more than one way to skin a cat. These above options provide you the opportunity to raise funds without going deep into debt.