5 Unique Ways to Fund Your Startup Company
Most startups have modest beginnings. With little or no business experience, trying to find traditional funding for your company can be challenging. Big banks and other lenders are wary of lending money to a venture that has yet to demonstrate how profitable it can be. This reluctance results in most startup owners getting creative about where they get their funding.
Starting a business is not cheap. Developing your product, coordinating a manufacturing strategy, and covering an advertising budget can all stretch your business budget. Of the hundreds of thousands of new businesses that are launched each year, few succeed largely due to a lack of funding.
Asking important questions such as “how much can I get for a title loan,” or getting your business on crowdfunding sites are just a few feasible ways to gather your startup capital. Let’s look at a few additional unique ways to find the funding for your startup launch.
Bootstrapping is the most common source of funding for startups. Owners scrape together funds from their resources. This could mean emptying out a savings account, cashing in an investment portfolio, or dipping into a 401k account. In most cases, startup owners have few alternatives but to gather capital from their assets.
You may have a good source of capital for your startup sitting right in your driveway. If you own a vehicle, RV, or boat, you can borrow against the value of your vehicle with a title loan. Title loans are secured types of financing that allow you to borrow money up to the estimated value of your asset without having to hand over the keys. In the case of a vehicle, you would deal with a title loan lender who would give you an estimate on your vehicle’s value. You can then borrow up to that amount and turn over the ownership title as collateral on your loan. You can still use your vehicle and will only lose it if you fail to meet your repayment terms.
There are wealthy patrons all across the world that are always looking to invest in new ventures. You can find these types of financial backers on platforms like Angel’sList. You will need to create a formal business plan and describe the type and amount of financing you are looking for. Most angel investors will expect to either claim a percentage partnership in your business or a part of the profits.
Platforms like Kickstarter and GoFundMe have helped thousands of startups and individuals get the funding they need for their ventures. Business owners can create an online profile describing their business and setting a goal for needed donations. You generally have a set period of time to collect pledges. There is no guarantee that a crowdfunding campaign will work, but with an intriguing story, you may earn a bit of money.
The government has hundreds of loans and grants that are available to small businesses. If you need funding for your startup, you can go online and find out what startup grants you qualify for. You will need to follow a specific procedure and submit a formal business plan to get grant funding.
You may have a million-dollar business idea, but without capital, you may not be able to get your startup off the ground. Try some of these unique ways to find the funding that you need to make your startup a success.
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