Not everyone can walk into a bank and get money to start a small business. Often, you need to have collateral, and of course, you need to have good credit. But, just because you have had some financial setbacks in your life, it doesn’t mean that you shouldn’t have the opportunity to turn your life around and start a successful small business. Luckily, there are many other ways that you can get the funding you need to get started, and you don’t necessarily have to deal with any banks. For starters, you can try selling things that you no longer need. Take your old mobile phone for instance. There are many companies that will give you pretty decent cash when you sell your phone and other gadgets. Some other funding ideas include:
1. Personal Savings
If you are lucky enough to have been able to put some money into savings, you will have some capitol to start your small business with. But, remember that you will need more than just what it takes to start the business. You should also make sure that you have enough in savings to pay all of your living expenses for at least one full year. It may be necessary for you to go without that night at the movies or a takeout meal for a while, because you may not be able to draw a salary, but you will have your business, and your bills will be paid.
A lot of people are going the crowdfunding route to start their small businesses. You likely won’t raise a lot of money, but you are very likely to get some of what you need to get started. Depending on the nature of your business and how you portray your need for financing, you may even get more than you need to set up a business. Crowdfunding is easy, and payments can be made via Amazon through a credit card purchase.
3. Venture Capital Firms And Angel Investors
While it can be a bit of a song and dance to get funding this way, it is still a possibility that you shouldn’t overlook. Make sure that you present them with an awesome business plan that they will really want to get behind. Then, if they are interested, they will back your business, usually for a share of equity or part ownership.
4. Family Members And Friends
Many people do not like to mix personal relationships and finances, but when it is done properly, it can work out really well for everyone involved. The thing to keep in mind is that you absolutely must make sure that everything is in writing, so everyone is clear on all of the terms and you don’t end up losing the faith of your loved ones.
5. Government Grants
There are many government grants available that will help people to start businesses of their own. There are grants in the local, state, and federal levels of government, and some are specific to certain groups of people. For instance, if you are a woman, you will want to check out the SBA Women’s Business Centers in the US, which provide information about business grants for women.
6. Economic Development Programs
There are all kinds of programs out there that are geared towards those who want to start their own businesses. You will have to do a bit of research to find the organizations that offer these programs, and then dig a little deeper to find programs that meet your particular needs. In some cases, you need to have specific qualifications, such as being a minority or being located in a region where there is not a lot of employment.