Finding an investor for your business is no easy task, and it's hardly a given that it will happen. In fact, many small businesses and startup companies get started without any investors at all. They happen because someone has a vision and the ambition to make it happen. In many cases, an entrepreneur bets on themselves and opens for business first, with the investment coming later.
Raising money for your first business is an important first step. You need to make sure you have the finances to get your business started. It might mean having enough money to sign a lease and renovate a physical location, or it might be giving yourself enough of a runway to create a minimum viable product.
#1 Borrow from Yourself
Almost every entrepreneur is going to wind up using some of their own savings one way or another. Your business will need time to start earning revenue while you find clients and customers or build your product. You should expect to use your own capital to get your big dream going.
That said, you may want to be cautious about putting everything into it. Consider business survival rates. Roughly 70% of goods-producing businesses and 68% of service-providing businesses survive to the five-year mark. That doesn't necessarily mean they fail, as some may simply sell or retire, but it's important to consider everything that can happen along the way.
#2 Start a Side Hustle
A great way to start your own business is to start small and start now. Can you start freelancing or selling your product on a part-time basis? With online platforms for independent businesses thriving, there are tons of ways you can start without giving up the security of a full-time job.
Starting your business as a side hustle will also give you time to grow organically. If and when you decide to make the leap to working for yourself full-time, you'll already have clients and customers to form a basis for your business.
#3 Sell Unwanted Jewellery and Heirlooms
One way to make some quick extra cash is to look at assets and valuables you own that you don't necessarily need. Unwanted gold and silver jewellery, coins, and heirlooms can be a valuable place to look.
Precious metal buyers like Muzeum offer a reliable way to get the most for anything you own that contains precious metals. Professional bullion buyers usually offer more than any pawn shop would.
Depending on what you have, this can be a quick way to raise a few extra thousand dollars for your business.
#4 Take Out a Business Loan
Taking out a business loan is an effective way to get started when you have high starting costs, such as opening a brick-and-mortar location. Keep in mind that business loans may require you to put up personal collateral, such as home equity, and this can make starting your own business a big risk.
You may want to consider alternatives such as crowdfunding rather than risk all of that personal capital.
#5 Crowdfund Your Startup
Crowdfunding has proven to be a successful way to get creative projects and businesses off the ground. Crowdfunding not only gets you some starting capital, but it's also a good way to form a loyal customer base before even get started.
The downside of crowdfunding is that you need a way to connect with audiences. This can be a useful way to leverage a social media following or take a side hustle to the next level.
Raising your starting capital without an investor may not just be a necessity. It also helps keep ownership 100% in your own hands until you decide to open up stock for sale. This will also keep profits in your own hands if your business is a success.
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