Every entrepreneur knows what’s what – you’ve got a great idea, you’ve got the passion to back it up, and the vision to grow it. What you might not have, however, is the money to make it happen, and that’s where funding comes in. Of course, funding can feel like one of the biggest hurdles to get past, but the good news is you don’t have to rely on just the standard ideas and traditional loads or even using your own credit card (which really should be avoided as much as possible). Instead, there are some fantastic and creative ways to get funding for your business, so read on to find out what some of them are.
Crowdfunding
Crowdfunding might be the first thing that comes to mind when you think of alternative ways to finance a project, and there’s a good reason for that – it works. It’s the funding model that a lot of startups go to without trying anything else, and it’s easy to see why because there are so many options and it’s a simple thing to set up and manage.
But what is it that makes crowdfunding special? The thing is, it’s not just about raising money (although that is the main goal in the end) – it’s about building a community and finding customers before you even start selling anything, or perhaps before your business even exists in the first place. Plus, it’s a great way to test the waters and make sure your idea is a good one before you put too much time and effort, not to mention money, into it.
Using A Hard Money Lender
For entrepreneurs in the real estate niche, partnering with a hard money lender might be the best solution. These are lenders who generally offer shorter term loans which will be based on the value of the property you want to invest in, so there are some things to consider, but what makes this idea work so well is that it’s not just based on your income or credit score, which is why it’s a better option for property at least.
It’s true that these loans can come with higher interest rates, but because they’re short term, that doesn’t actually matter as much as it would if you opted for a traditional loan over many years, and if you can get the money you need sooner rather than later, you’ll be able to make a faster return, so the interest may not even come into it.
Attracting Angel Investors
Angel investors are another excellent option when it comes to getting financing for your business because you’ll actually be talking to real people and you’ll be able to show your passion and plans, which can definitely help when it comes to borrowing money. As long as you can get the investor to believe in your idea as much as you do, they’ll be willing to put their own money into it (and make a profit, which is something they’ll definitely be keen to do).
Unlike traditional lenders, angel investors can also be fantastic mentors and pass along useful connections that you wouldn’t otherwise get, so you’ll end up with more than just money – you’ll have everything you need to succeed.