Entrepreneurs need to do more than simply work hard and create great products. They also need to be masters of getting money. Without capital, they can’t unlock the potential of their business ideas and make them a reality.
In this post, we take a look at some of the ways you can get money and start a thriving business today.
Get Money Through Government Programs
Governments love people who start businesses and boost the economy. That’s why they’re often willing to assist in the company formation and building process.
In the US, for instance, there are more than 1,000 federal grant programs in operation for different kinds of businesses. Many of these cater to specific groups, such as women and minorities or veterans. You can check government websites to see which programs apply in your area.
Another approach you might want to try is crowdlending. Kickstarter is the most popular, but there are others.
When people crowdfund, they send you cash which you are then free to use to pursue your projects. They will then bake interest changes into the agreement so that, hopefully, you’ll pay them back more than what you started with. Just remember that these platforms aren’t free. Many charge a hefty service charge.
Seek Out VCs
VCs or venture capitalists are people who have a lot of money in the bank and want their investments to grow. They’re often willing to lend large sums if they think that you have a good idea.
How you strike a deal with a VC is very much up to you. Some will simply give you the money you need and charge you an interest rate – usually somewhere between 10 and 16 percent. Others will ask you for equity in your firm. This means that they will share in the profits and take their cut at the end of the quarter. Others will combine loans with equity in a way that benefits both parties.
Take An Annuity Payout
You don’t have to wait until retirement for an annuity payout. It turns out that there are services that allow you to access the funds that you need right now. If you have a policy, these can be a great way to free up cash and put your hard-earned money to work.
Secure A Personal Loan
You don’t always have to borrow money from friends and family to start your business. Instead, you can take out a personal loan. Many companies are willing to lend to company owners at favorable rates, particularly if you have a good credit history.
Draw Down On Your Savings
Lastly, there are a whole bunch of methods you can use your personal savings to finance your business if you feel that this path is right for you.
Nobody should totally drain their bank account to make their business a success. Instead, look for opportunities to liquidate your savings so that you can plow them into your business. Also, get rid of any outgoing payments that you no longer use, such as car services or gym memberships.