The old saying, “It takes money to make money” still holds true today. For business owners, raising money for the next stage in your vision can be challenging. From launching a new intuitive product, to netting funds to franchise your business, you will need more money.
Capital is the magic word, and having access to capital for growth is a common issue for business owners. You can bootstrap your growth and success, which often means dipping into savings and not taking a salary, or you can get creative in your bootstrapping efforts.
“I became an entrepreneur because I wanted to write my own story,” Ryan Smith explained in a Harvard Business Review article. “But securing funding while still a budding business naturally limits a company’s options down the road.”
There are a variety of creative ways to raise money for your business. It just depends on what is right for your business. Here are few creative funding ideas you can easily employ.
Crowdfunding is a great way to raise money for your business, especially if your business has a strong audience base. By seeking small contributions from your built-in audience, you can get your new projects or products financed.
In fact, money raised from crowdfunding in 2016 reached $738.9 million globally. That is a sizable amount, and your business can get in on the crowdfunding wave.
Popular crowdfunding platforms include:
You can customize rewards based on the size of contributions, and this will spark larger contributions. Those contributions add up fast, and soon you will have the funding you need.
This creative way to raise money for your business is one you can implement quickly. You are probably very familiar with the advance payment model. When you purchased your domain and website, you probably opted to pay for a year or two to get big savings.
You can do this with your services. For example, if you have a premium feature for your app, you can offer it discounted if users prepay for a year or two. This over multiple users can serve as the capital you need for your next business endeavour.
Add-On Products or Services
If you want to boost your revenue to begin building capital for your next big idea, you can create add-on services or products. These are simple products or services that your customers will find a useful complement to their main purchase.
If you’re in the tanning business, you can add on services and products easily to increase revenue. For example, if your customer purchases a tan package, you can upgrade them to a better tanning bed for just a few dollars more per tan.
Add on or upselling may not work for every business, but if you are creative enough, you can find something small your customers may need to make their purchase experience that much better.
Working Capital Loans
This may not be an overly creative way to raise money for your business but serves a purpose for small business owners in trouble, with a timely idea, or sense of urgency in a competitive industry.
Working capital loans give you fast access to the money you need to grow your business immediately. They are also a great way to secure quick funding without going through the tedious process of getting a traditional bank loan.
You need to have been up and running for six months or longer, and you can have collateral or not. Your credit score can also be less than perfect. There are many loan companies that can qualify your business for a working capital loan in 48 hours or less.
The above creative ways to raise money for your business are just a few of many. Some may be just right for your business, and it is important to have a funding option that works best for your vision. From crowdfunding to upselling, you always have options to get the money your business needs to succeed.
About the Author:
Uma Campbell is a yoga instructor and freelance writer. She currently lives in Southern California. She enjoys writing about meditation, natural medicine, and design. Her interests include home decor, yoga, and running. She also really loves crafting She has her own line of home-made jewellery. She lives alone with her cat.
Get in touch … via Twitter @Umajcampbell
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