In order to get what you want from most things in life, you need to spend a little money. The concept of making something out of precious little is something that we’d all like to do, but having a little boost makes things a lot more comfortable. It’s absolutely possible to start up a project or a business with nothing and turn it into a prosperous machine, but a little capital always speeds things up.
If you’re thinking about leaving your job and starting up a business, then it’s probably been on your mind every single day for a significant amount of time. You’ve probably pictured how you want to work, and you may have even written down a business plan or two. That’s a great start, but you do have to consider just how you can raise some funds to get your idea off the ground.
For any newbie, the idea of pulling large sums of money out of seemingly nowhere is pretty daunting and confusing. But it doesn’t have to be. A little research and a little experience are all you’ll need in order to learn about this kind of thing. After all, those that have been there and done it weren’t experts, to begin with – they all had to figure it out, too. If you’ve got a couple of minutes and you’re interested in knowing a little more, then you may as well read about these fairly basic ways of raising money. You never know; this time next year you could be well underway!
We’ll start off with the simplest of ideas. Saving is something you’ve done since you were a young teenager, so the idea isn’t exactly going to be rocket science. The practice of doing so tends to be a little trickier than the theory, however. You always need to have money to spend on day-to-day stuff, so storing some of it away can sometimes be a little tricky – especially when you’re in a tight spot. It’s a good idea to write down what your intentions are, though. Planning beforehand and creating a system will make putting money away a lot easier for you. While you’ll have lots of other options in terms of raising funds, keeping some held back is something that would make a whole lot of sense. It’ll be a slow burner, but after a while, quite a lot of capital will be built up.
Pitch to any potential investors
When an aspiring entrepreneur wants to bring in some heavy capital in order to get things up and running, they’ll often look for people or groups with lots of wealth already. The idea would be to get together a presentation and an airtight business plan and convince them to part with their money. If the potential investor likes what they see, then they’ll be more interested in getting involved.
Many banks across the globe offer loans for start-ups. Pitching to different creditors is part and parcel of generating funds, so if you’d like to get a boost in terms of investment, then you might have to brush up on your presentation skills! Angel investors are something you could consider. Simply put, they’re wealthy individuals or groups that look to put money into someone’s project in the hope of a big return – you will have seen similar instances on the likes of Shark Tank or Dragons’ Den.
You could also look to grab a personal loan in order to raise funds in a shorter period of time. You’ll obviously need to figure out whether you’ll be able to pay them back over a period of time; it’s not something you should do impulsively. If it’s possible, then you should scour the market for the best secured loan rates before committing to something this emphatic. The idea is to make money, remember!
An increasingly popular means of raising capital these days is to simply ask for it. Crowdfunding might seem a little too simple, but if you make a compelling point and reach a lot of people, then quite a lot of money can be raised. You simply have to create an account on the likes of Kickstarter, and you’re good to go.
Ask friends, family, or significant contacts
You have people close to you, of course. Letting them know about a project you have could result in an injection of cash. They may be very interested in the proposition. The good thing about working together with friends, family, or previous contacts is that their heart will probably be in the right place – you’ll be able to trust them. They’ll also be able to give you little pieces of advice and wisdom should you need it.
This is a collaborative post that was ghost written for More From My Career.