You might spend years dreaming about opening your own business and even making tentative plans for your company. The one thing keeping you from that dream is the financing. Experts often say that you should never spend your own money to get a business off the ground, but if you don’t use your own financing, where does that money come from? Whether you decide to run an online business with little overhead costs, or you want to open a local business in your neighborhood, you will still need to know how to raise the capital that you need.
Using crowdfunding websites like Kickstarter and indiegogo might help you make your dreams a reality. These websites let you create an account and solicit donations from others on the site. You can even post photographs and videos to show potential investors more about your project. Most sites require that you set up a minimum amount of money and that you raise that amount before earning any cash, and most sites take a percentage of the amount you earn for using the site. Some companies raised millions of dollars in two months or less.
If you hate the idea of borrowing money from your family and friends to get your new company off the ground, consider working with angel investors. Angel investors are professionals who have money they want to donate to others in need. Depending on the organization you work with or website you choose, you may need to meet with those investors in person, submit a business plan or even write a short essay. Some give you money in the form of a loan that you pay back later, but others take a percentage of your company in exchange for the money you receive.
Small Business Loans
In addition to crowdfunding and angel investors, you can also get help for your business through the Small Business Administration. The SBA acts as a guarantor when you apply for a loan. It promises the lender that if you default on your loan or your business goes under, the SBA will cover the amount you owe. You can borrow thousands or more from the SBA when launching your new business or after opening your company. Get information here about online business opportunities after deciding how to get funding for your next business idea.