Great business ideas? Check. Product prototype? Check. Potential customers? Check. Strategic business plans? Check. Money to actually launch the startup? Err… hold on.
Do you find the scenario above very relatable with your current situation? Despite having compiled and sent your startup funding proposals to numerous prospective investors, it seems that luck is not on your side yet. There is no doubt that finding the right source of funding for a business idea can be a challenge in itself, especially for newbie entrepreneurs like you. A great idea will not go anywhere until you do something to make it real. Therefore, you should be able to convince your future investors that the idea you offer is viable and potential.
Even if it seems that all your efforts to get the funding you need have gone in vain, do not let this failure scare you away from starting your own business. If the conventional ways do not work, then why not thinking outside the box and trying a unique approach to raise the money? Here are some unusual ways you should try:
Do not just focus on raising money from individual investors. Instead, you can try the hottest way to gather business capital: crowdfunding. Crowdfunding is a concept where you can get the funding for your project from different sources, such as individuals, organisations, or regular citizens. In exchange for the cash invested, this group of investors can gain certain amount of profits or enjoy special privilege.
- Business plan competitions
Entering grants and business plan competitions is not only a viable way to win the money to fund your business, but also a great way to test the water. You can learn from judges’ inputs to improve your business ideas and make it better before really launching it.
- Online loan sites
Local banks are not the only place where you can ask for a loan. Nowadays, there are increasing numbers of online loan platforms where you can submit your loan application and necessary documentation.
- Mortgage property
Selling your assets can be a good option to fund your startup, but only if you can come with a strategic plan. As you never know how your business idea will turn out, you should calculate the risk carefully before taking the move.
- Family and friends donation
More than a great moral support, your family and friends are also good source of raising money. While this could be easy and quick way to get funding for your startup, receiving family and friends donation can be problematic as well. While these loans could be categorised into family or friendly donation, it is still crucial to create a written lending agreement to avoid any problems in the future.
- Side hustle
Want to start a new business but the capital is limited? Then get ready to do some side hustles. Not only does this help you gather the much-needed money, having two or three side gigs can be a good backup plan if your business plan does not turn out as expected.
- Profit sharing
If your startup does not have enough money to pay the employees, you can still attract potential talents to work with you by offering profit sharing system.
- Garage Sale
Similar to point number four, selling your possessions through a garage sale can be the quickest and easiest way to raise money for your startup. While this might be hard on your part, you should keep in mind that the money you get from selling your stuffs will be used to build a business.
Read also: To Break New Ground: 6 Signs You’re Ready to Deploy Your Own Startup