2021-11-29 12:34:08
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WAYS TO RAISE MONEY FOR BUSINESS1) Pre-SaleTake a page from the big names in the tech industry and sell your products before they launch. Offering pre-orders ahead of your scheduled rollout date is a great way to gauge consumer demand and raise money for business at the same time.
A well-run pre-sale can provide much-needed funds to finance your business in the early stages of development.
2) Crowdfundingflat lay of desk with office supplies and crowdfunding plan
Don’t want to give away equity shares of your business right from the start? Go the crowdfunding route instead.
Choose a crowdfunding website, create a pitch, share your business model, and offer incentives to interested individuals. Then, through the power of micro-donations, you can begin to raise money for your startup.
3) Credit CardsAlthough it’s not the ideal way to raise money for business, credit cards can be a quick and easy solution to your money woes when cash runs low. With a business credit card, you can charge the things you need and write a check for the minimum payment each month.
Just remember to pay off these debts first when the business gets going or you’re going to get buried under sky-high interest payments.
4) Personal AssetsOne of the most accessible ways to raise money for business is to use your personal assets. Tap into your savings or cash in a bond. Sell some valuables. Downsize into a smaller living space. Walk to work instead of driving or spending money on public transportation.
When you really start looking, you’ll find plenty of ways to use the assets you’ve got to build your business for the future.
5) Angel Investorsbusinessman closing a deal with angel investors as a way to raise money for business
Angel investors are individuals with capital to spare who are willing to take risks on fledgling businesses if they foresee a significant return.
Another benefit of raising money for business through angel investors is that they are more willing to offer mentorship than straight investors or venture capital groups.
6) Strategic PartnersIf you have a relationship with a supplier, distributor, or even a customer who can benefit from your product or service, it doesn’t hurt to ask them to get involved.
Help them see what they can gain by partnering with your startup, and they may be willing to cut costs, provide you with services, or invest directly in your budding business.
7) Venture CapitalIf you need large amounts of money quickly, venture capital investors may be just what you’re looking for. Keep in mind that those investors will be with you until they recoup their costs (and profits) and they may demand a short payback time frame (e.g., three to five years).
8) Pay As You Gostacks of quarters next to a few pennies on white background
Paying as you go — also known as bootstrapping — is a cost-effective way to make your company’s capital go as far as possible. With the pay-as-you-go method, every dime gets redirected into the business to pay costs and keep the lights on.
That means you may have to live without a paycheck for a while, but if you’re willing to sacrifice for the future, it’s a straightforward method of raising money for business.
9) Business IncubatorsAnother way to raise money for business is to get involved with an incubator. Business incubators provide money (small amounts), tools, training, and networking to startups and small businesses in their area.
Most business incubators are located in major cities, but don’t dismiss this option if you live in a small town. Do a little investigating and you may be surprised what’s available.
10) Share Risk With Your Employeesbusiness teammates celebrating with high fives in an office area
Instead of paying your employees a market salary (say $50,000 per year), share the risk and raise money for business at the same time by offering them $40,000 per year plus equity incentives of $10,000 to be paid later.
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