More people than ever are starting businesses of their own. In fact, up to 82% of young people, today are hoping to one day start up on their own. Traditional employment is no longer something that everyone dreams of. Sure, it’s the safe option, being an employee means wages, holiday pay, sick pay and benefits. Starting up on your own has risks. There are no guarantees. You might earn very little in the beginning. There’s no holiday or sick pay. Any time off will have to be self-funded. To the point that 14% of small business owners only take a vacation every few years and half say that they almost never take time off for sickness.
But, it has its other perks. It’s a chance to make money without a ceiling. To work flexibly. To do things your way and to grow something to leave behind. The internet and the growth of online marketing and sales mean that for most, starting a business of their own is much easier than it used to be. But, there are usually still startup costs.
If you’ve got money behind you, or plenty of experience in business, finding investments and loans are often the way to go. But, for someone new to business, this isn’t always a realistic option. Let’s take a look at some more realistic ways to fund your startup.
Sometimes, if you need money, the best way to get it isn’t asking other people. It’s making it for yourself. For many small businesses, this is a better way to go, as you’ll never need to worry about paying back your investors or the bank. Your profits are your own.
If you’ve got some cash already, investing can be a great way to make a passive income while you focus your energy on your business plan and brainstorming. Read this Betterment review for some more advice and help.
If not, your best option might be to simply earn money. If you are keen to get started on your business and don’t have time to do it around a full-time job. In this case, making money as a freelancer can be a great option, as well as an excellent way to make important contacts for the future and grow your own online presence.
Friends and Family
When you are starting a small business for the first time, without investors or large funds, approaching a bank can be a little scary, and unfortunately, it won’t always go well. Instead, ask your friends and family for help. Show them your business plan and sign contracts to protect both parties. If you don’t need to borrow much, this can be the perfect solution.
Once upon a time, crowdfunding might have been thought of as begging. Nowadays, people are crowdfunding for everything. If your business offers something new and exciting, and you think it’s got the potential to please the public and give them something that they need, crowdfunding can be a good option. Lots of companies try this, however, so if you want to stand out, make sure you use social media to generate a buzz first.