Launching a startup can be thrilling and scary at the same time. You have to weigh the risk of turning your idea into a viable business with the reward of making a small fortune and contributing to a better world.
Long before you assemble a team, build an infrastructure, and create a customer base for your product or service, you have to figure out how to fund your project.
After the financial crises of 2007, bankers became ultra conservative, preferring to invest in proven ideas. So if a bank will not give you a business loan, it doesn’t mean your idea will not work in the marketplace. Instead of giving up, seek funding from nontraditional sources.
5 Ways to Get the Money You Need
Here are 5 ideas to raise money from non-traditional sources:
1. Raise the money from investments.
If you have some money set aside but not enough to fund your startup, you can invest the money you have to create more money through the financial markets. However, you want an investment vehicle where you get a fast return. One type of investment that fits that description is binary options. Here you can learn more about profiting from small price changes in large assets like agriculture commodities.
2. Raise the money from a traditional job.
However, what if you don’t have money set aside to invest in the financial markets?
Then you can raise it.
If you are planning on a startup, you already have a high level of knowledge and skills to set it up. You could use what you know to get a high-paying traditional job.
If your startup idea is to create a new kind of app that you know will fill an un-met marketing need and you have coding skills, you can apply for a programming job and earn a handsome income. If you combine this income with a low-cost lifestyle and an aggressive saving plan, you can sock away a large amount of money over the course of a year.
Once you have some savings, you can feed it into an investment vehicle to increase your capital.
3. Raise the money by blogging.
Suppose, however, you do not want to get a traditional job, even a high paying one, because it will not be possible to save enough or it will deprive you of the time you need to launch your startup. Why not use your knowledge and skills to create an online business?
Now instead of deploying your knowledge and skills to help an employer grow their business, you can teach other people who want to learn it.
Let’s assume that you’re an excellent coder. You can take the following things to launch an educational business.
· Refine your copywriting skills.
· Build a blog on how to learn coding from home.
· Invest in SEO to get organic search traffic.
· Capture subscriber information of visitors who come to read your blog.
· Monetize your blog by creating coding classes that appeal to your target audience.
Your blog does not have to be a huge success. Once you have some income coming in, you can channel it into an investment to get the capital you need for your startup.
4. Raise the money from crowdsourcing.
When you’re thinking of crowdsourcing, you might imagine that the most popular websites like Kickstarter and Indiegogo will be the best places to go.
These sites work very well for smaller projects—like an author who needs money to research a book idea or someone who wants to get the funds they need to market their new invention to a wider audience.
However, if you’re looking to raise money for your new business idea, you might be better off focusing on a crowdsourcing site like Fundable. Here is a description from Business News Daily that describes why it would suit your needs perfectly:
“Created by a team of startup founders who understand the challenges of raising capital, Fundable allows entrepreneurs to raise money from investors, customers and friends. Companies seeking funds can create a profile on the site, set their goals and rewards, and promote their campaign. Fundable offers companies the opportunity to provide reward-based fundraising and equity fundraising. Reward fundraising allows companies to offer rewards from companies seeking less than $50,000 and allows investors to donate any amount. Equity fundraising, on the other hand, is for companies looking to raise a larger amount of money, and requires a minimum commitment of $1,000 from backers.”
5. Raise the money from Venture Capitalists or Angel Investors
If none of these ideas appeal to you, then you can always try alternative lenders like angel investors or venture capitalists.
The difference between the two is that venture capitalists are companies while angel investors are individuals with deep pockets. What they both have in common is an interest in innovation.
Alternative investors have a “possibility thinking” mindset. They like to work with people who have original ideas with commercial viability.
Alternative investors look on innovation as the best business model. Examples of innovators striking it rich are a big part of America’s business legacy with examples as far apart in time as Henry Ford and Steve Jobs.
Stay the Course
Everything easy was once difficult. Launching a startup is not easy. However, if you truly believe in your idea, these five methods will give you a starting place to finance your dream. History does not record the names of those who had a good idea but gave up on it. It only mentions those who stayed the course and found a way to make things happen.