What can you do if you’ve got an incredible idea for a business, but zero funds to create it with?
Finding the funds to get a business off the ground can be challenging, and at times, can feel like a hopeless task. However, there are now more ways than ever to raise capital for a new business venture, and the 7 tips listed below could help you fund your business idea:
- Small Business Grants
Money given from government agencies or organizations for a particular purpose, these grants are typically awarded by non-profits and large corporations, to help entrepreneurs fund a business idea.
- Business Card Credits
If you’ve got good credit, you could get approved for a business credit card in less than a day, and if you’re desperate to get started on a great business idea before someone else takes it, this can be a viable option.
- Crowdfunding
If your business idea is robust and appealing to others, you could use a site like GoFundMe to raise funds, get pre-sales and even test run your idea.
- Incubators and Accelerators
Giving companies access to a wide range of resources to help them get their business idea off the ground, incubators typically offer physical space, business support, training and mentoring, while accelerators help companies with seed funding and provide them with extra resources in exchange for equity.
- Bank loans
If you match the criteria for a business loan with a certain lender, then you have a strong chance of securing one to help you raise funds.
- Purchase Order Financing
Let’s say you’ve already got a business and have a lot of orders to fulfil, but you don’t have enough cash to produce the products to meet demand until the customer pays; what can you do? With the help of a purchase order financing company, you can pay the production costs directly to the supplier, and when your customers receive their goods and pay you, you can use that money to pay back the purchase order financing company. While not the most affordable way to raise funds, it can help if you’re running out of options.
- Strategic partners
Whether from an appreciative customer, a supplier willing to give you credit, or a distributor who has faith in your business, a strategic partner need not be a financial partner, but can provide you with a financial lifeline, typically in the form of free or discounted rates for their services.
Try to think creatively when raising funds for a business idea, and explore every option open to you. While some will find it easier than others to get the capital they need, if you believe in your idea, can convince others of its worth, and aren’t prepared to give up, you’ve got every chance of making it a success.