Contrary to popular belief, you don’t have to go into debt to get your dream business off the ground. All you need to do is adjust your personal spending habits and find ways to make money and increase your savings. Here are a few practical ways to raise capital for your small business idea.
Sign up for a side job
Side hustles are alternative ways to make money outside of your main job. There are plenty of side jobs that you can do to supplement your salary and grow your savings.
A few examples of side jobs you can sign up for include a paid volunteer research study opportunity, delivery driver gigs, and tutoring jobs. These jobs are typically less demanding than a full-time or even a part-time job, and they don’t require a long-term commitment from you, so you can stop and start a new job at any point in time.
Ask your family and friends
If you’re completely new to the field of entrepreneurship and don’t have connections to investors, you can pitch your idea to your family and friends first. While they most likely won’t be able to offer as much capital as a professional venture capitalist could, every cent that they put towards your business still matters.
Don’t quit your day job
You’ll need to maintain a steady salary in order to come up with the money for your business while supporting all your other needs. You don’t necessarily have to hold down a full-time job, you can also get a part-time job. Whichever type of job you have, just make sure that it provides you with a stable stream of income to fund your business while also having enough money for your necessities.
Crowdfunding involves raising capital through a collective effort of investors, friends, family, and interested clients, usually through social media or a crowdfunding website. This is a much easier and straightforward way to raise capital compared to pitching your idea to investors, banks, and venture capital firms, especially if you don’t have any prior business entrepreneurship experience.
Just remember that many crowdfunding platforms will take a small percentage cut from the total amount raised if you reach your goal amount, so be sure to factor that into your finances.
Sell your belongings
You may be sitting on some gold without even knowing it. Look through your belongings and see if there are things that could net you a ton of cash if you sell it. This could be anything from a baseball card collection to old clothes that don’t fit you anymore. While this won’t fund your entire small business idea, it’s still a step towards raising enough capital to get it off the ground.
Consult with angel investors
Angel investors are wealthy individuals who are interested in investing in great ideas. You don’t need to have experience or a proven portfolio to consult with an angel investor unlike if you were to apply for funding through a bank or a venture capital firm. All you need is a good idea and a strong, attention-grabbing pitch.
You don’t have to go broke to fund the business of your dreams. All it takes is a little patience, diligence, and ingenuity and you’re sure to set your entrepreneurial goals in motion.