Creative Ways to Fund Your Startup
Every new business needs financial support. Without this vital cashflow, operations may never take off, especially in today’s highly competitive market. Basic inventory, marketing, and initial payroll needs have to be met somehow, and too many entrepreneurs try to squeak by without securing the right funds first. People put themselves on a fast track to burnout by working round the clock for no pay, trying to launch their enterprise. However, there are many options for funding out there these days, so there’s no excuse to skimp, or not do it right the first time.
Many people immediately think of traditional bank loans as a primary source of business funding, and while these are certainly a good option for some, there are dozens more possibilities that may suit your needs better. Depending on your unique startup market, and your tolerance for risk, other funding sources may offer the flexibility, social support, and repayment terms that make sense for your goals.
Here are a handful of creative ways that you should consider, when looking to fund your startup:
- Friends and family
There’s nothing shameful about asking your loved ones to support your dream, and if you go about this the right way, you could end up with not only money, but encouragement and connections too.
Hundreds of successful businesses got their start by sourcing their initial costs from a big group of strangers. Certain industries can thrive on this type of socially-engaging, rewards-based platform, and there are many innovative crowdfunding options on the market today.
- Your personal cash
Too often, entrepreneurs look to everyone but themselves to come up with startup funds. However, if a potential investor sees that you haven’t sunk your own hard-earned dollars into your own enterprise, they will be much less likely to do so.
In both the corporate and non-profit sectors, there are places to find small loans aimed at helping new entrepreneurs get their start. These microloans (typically up to $35k) can give you a boost, and may be open to you, even if you don’t have great credit history.
- Credit cards
While it’s not the best option for some, personal lines of credit have been used by millions, to build their dreams. As long as you understand the terms and conditions, and make your payments on time, this can be a rewarding choice because you retain full control of your funds and your business.
Want to learn more about startup financing in Texas? Reach out to Sutherland Law today and request your free consultation.