6 Ways to Fund Your Startup Business When You’re Broke
Funding a business can be extremely difficult, especially if you have no assets or cash to speak of. Many lenders won’t give you money unless you have a form of collateral.
However, you can still fund your startup business even if you are struggling to make ends meet at home. Banks are not the only way you can receive money to get your business idea off the ground.
Investors are those that are interested in your business idea and will give you money for a share of the profits. Family and friends are usually the first to be asked while other private organizations may want a stake in your company. With an investor, you don’t have to worry about a monthly bill as you would with a bank loan.
A growing method of generating cash for a business idea is through online crowdsource funding websites. Many people have generated a great deal of cash for their ideas through these organizations.
Unlike investors, this money is usually in the form of donations while you offer a small token of appreciation for people’s help. Many business owners hand out things such as shirts or other products related to the company itself.
Use Your Own Assets
Until your business can begin buying its own equipment, keep track of personal belongings brought into the establishment. This can help you get started sooner without upfront purchases. Once your business begins to stabilize, start replacing your personal possessions with equipment that the business will own.
Set aside a small percentage of your current paycheck into an account strictly for your business startup capital. Before you pay any bills or purchase any goods, stick anywhere from five to ten percent of your check into the account. If you can’t live on what’s remaining, figure out how you can reduce your living expenses.
Although you might not make a large amount of money in the armed services, you can save a great deal of cash for when your tour is finished. You’ll learn professional traits and receive an education while earning cash to set aside for your business.
Online Freelance Work
The Internet is full of companies and individuals looking for freelance professionals to do everything from accounting to writing. While you’re maintaining your business, work online as a freelancer from your office.
It can help pad your pay every week without taking cash out of the business. This allows you to build up your business without worrying about making enough money to pay your own bills.
Although people such as Bob Parsons started off with very little to nothing, they have gone on to build empires worth billions of dollars.
This isn’t saying that your success will rival some of the most influential people on the planet, but it does go to show what tenacity and ambition can do for you. While you may not believe your starting the next million-dollar corporation, you never know what can happen if you don’t try.