Got an entrepreneurial dream but haven’t got the money to make it a reality? There are many ways of earning that extra cash to help set things in motion. Here are a few options that could be worth considering.
Take out a business loan
For borrowing a large amount, there are plenty of lenders out there that specialise in business loans. Applying for a business loan generally requires a strong business plan and credit score. You may be able to shop around on sites such as BusinessLoans.co to find a loan applicable for those with a low credit rating.
Alternatively, you may want to minimise the amount of interest you pay back. Either way, you should always compare lenders to get the best loan for you. You could even consider hiring a loan broker to find the best deal and help pitch your business to lenders.
Create a crowdfunding campaign
Sites such as Kickstarter.com allow strangers to donate to your cause. This could include a business that you want to set up. There are many other strategies of crowdfunding that could include hosting a paid workshop or running a market stall. The key is to get people interested in your cause, or at least offer something else worth paying for, the profits of which can be used to fund your dream business.
Consider peer-to-peer lending
Peer-to-peer lending networks are new to the internet age and are an alternative to standard loans. Other users contribute money to your cause much like a loan, which you then pay back. Multiple people can contribute to a single loan, making it possible to borrow large amounts of money. There are many different peer-to-peer lending sites such as RateSetter.com. Compare different sites to get the best interest rates.
Seek out investors
Another option is to seek out investors who are willing to pay a sum of money to get your business off the ground. In return, they will generally expect a share of your company profits. Getting an investor on your side requires a strong business plan and good incentives. There are lots of benefits to getting help from an investor.
Whilst they will have shares in your profits, you won’t have to pay any interest as you would with a loan. Investors may also be successful business owners themselves and many will be willing to offer business advice that could be valuable. The downside is that you have the extra pressure of making enough of a profit to please them, otherwise their investment will have been for nothing.
Find a business partner
Going into a business venture with somebody else as a partner could help halve the overall costs. You may even be able to fund your startup without having to borrow or seek investment. If you know someone equally business-minded who shares your vision, it could be an idea worth considering.