All entrepreneurs have to start somewhere, and if you don’t have money to fund the startup phase of your business ideas, there is a decent chance you will have to think outside of the box. Sure, you can go to see your bank manager with a business plan and pitch for investment. However, sometimes those institutions will turn people down if they don’t have an excellent credit rating and a proven record of success.
If you struggle to get the cash you need to get a new concept off the ground, the suggestions below should help to point you in the right direction. Use the information to ensure you leave no stone unturned and refrain from giving up on your ambitions. There is always a way to raise money, and you need to find it.
EMPTY YOUR SAVINGS ACCOUNTS
If you have lots of cash stashed away in your savings accounts, now is the best time to put that money to good use. If you don’t believe in your business idea enough to spend those funds, nobody else will either. You need to be 100% certain that your concept is going to create a healthy profit if you launch the company and begin trading. So, you should have no issues when it comes to spending your savings to get the venture off the ground. At the very least, you’re going to need at least $10,000 for the average startup. You might have to cut back on spending to ensure you don’t run out of money too early. However, if you have that level of capital lying around; you need to put it to use right now. Do not hesitate because someone else could come along and steal your idea.
GET A SECOND MORTGAGE ON YOUR HOME
Homeowners always have the option to remortgage their properties and get a lump sum of cash in their bank accounts. That is a suitable strategy if you’ve paid the current mortgage for more than ten years. There is a decent chance that you have a lot of equity tied up in the property, and you need to release those funds. Do yourself a favour and shop around when it comes to getting your second mortgage. Some banks and financial institutions offer better deals than others, and you don’t want to end up paying over the odds. There are price comparison websites you can use to sort the wheat from the chaff and identify the best interest rates in your country.
SELL YOUR VALUABLES
Most people collect valuable items during their life that sit in drawers or garages and never see the light of day. Maybe you have a collection of original Star Wars figures or something similar? Perhaps you spent a lot of money on some artwork a few years ago? Well, now is the best time to sell it on the open market so you can raise as much money as possible for your new business venture. There are specialist auction houses you can contact for niche items, and that should ensure you get the best price possible. If you have a lot of jewellery or gold; you need to contact one of the many companies that buy those items from the public. Again, shop around to ensure you get the best prices.
START MAKING SMART INVESTMENTS
As the old saying goes, sometimes you need to spend money to make money. Considering that, some of you might think about making some smart and careful investments with your savings. That is a fantastic idea if you don’t have enough cash in your accounts to fund the startup phase of your new enterprise. Websites like Small Cap Power are excellent places to learn the ins and outs of the stock market. The basic rule of thumb is that you should never risk more than you can afford to lose, and you should never put all your eggs in one basket. Contrary to popular belief, you don’t need an investment degree to make money from that process. You need to read lots of books by successful traders and replicate their techniques.
ASK FRIENDS AND FAMILY MEMBERS FOR HELP
There is a decent chance you might manage to raise the funds you need to start your business by asking friends and family members to make contributions. Strike deals with those people and sells them a small percentage of your operation for their money. Do that over a special meal or something similar. That way, you don’t have to pay the people back straight away, and everyone stands a decent chance of making a profit. Just don’t make the mistake of letting people invest any cash they can’t afford to lose. Even with the best business concept in the world, there is still a small chance that something could go wrong.
USE CREDIT CARDS AND PERSONAL LOANS
Lastly, and if all else fails, you can fund your new commercial venture using credit cards and personal loans according to experts like those at Greedy Rates. While the bank might not offer money for the business concept; they will probably let you have the cash for personal use. So, you need to become sneaky and refrain from allowing the bank manager know how you plan to spend the money. When all’s said and done, employees at the bank won’t tell the difference so long as you meet the repayment schedule and record the capital correctly in your business accounts. Again, there are comparison websites you can use the find the best deals and interest rates.
At least one of the suggestions on this page should help you to get your business idea off the ground and start making a profit. So, now is the best time to work out which strategy will work best for you, and then develop your plan and approach. With a bit of luck, you will have a successful operation in only a few months, and you can breathe a sigh of relief. Just make sure you refrain from risking your home or savings if you’re not entirely sure about the potential of your concept to make money. Collaboration.