Your business idea is awesome, you’ve got the drive and the know-how, but you lack the capital. And without funding, your startup lacks the air it needs to come to life. So, what do you do? You create a great pitch deck and knock on some doors to get the money you need.
Without question, fundraising for a startup is hard. Banks will turn you down, investors will want to control your business, and your rich friends may stop picking your calls. But if you persist, your startup may be the next Zoom or Uber. We want to help you get there as soon as possible, so we’re sharing 4 unique ways you can get funding for your startup. How do you get the money you need so desperately?
Win a Local Contest
You probably hate contests, and you’re not alone. But winning a contest is a sure way to get money for your startup. And we’re not talking about Shark Tank here, where competition is stiff and chances of getting funding are low. We are saying you join local startup contests similar to Shark Tank armed to win.
The competition is lower, and most contests have lenient entry requirements. Even if you don’t win the top prize, your business will get media coverage and you’ll improve your pitching skills.
However, make sure to track and manage your expenses after a big win. Otherwise, a reckless spending spree could send your start-up back to square one.
Try Crowdfunding
Crowdfunding helps you fund your startup through online pledges. You’ll need to write a compelling description of your business, demonstrate its potential, and show your ability to pay lenders back. After you’re done, post all the information on crowdfunding platforms like Kickstarter.
Crowdfunding offers the quickest way to get capital you may never need to repay. And you don’t have to let anyone control your business. You also get to tell the world about your business and hone your pitching skills.
Raise Startup Money Yourself
Your business may be worth millions in the future, but you may be the only one seeing that future right now. If you don’t want to give investors a stake in your startup, you can try bootstrapping, also called self-funding.
You can raise the startup money yourself and enjoy all the benefits that come with it. You can use your savings, sell a few assets, get a bank loan, or even remortgage your home. You can also get cash title loans if you own a car. It’s possible to get your startup up and running through bootstrapping.
Get an Advance from a Partner or Customer
The aim of starting a business is to sell a product or a service and make some money. But did you know your potential customers can pay for your product even before it’s ready? Yeah, that’s right. Through arrangements like royalty payments, white-label agreements, or early licensing, you can get money from potential customers or a complimentary business to fund your startup.
Pick the Right Fit
Not all funding options are suitable for your business as there can be a catch in the fine print. Also, don’t take on too much debt or give up a lot of control over your business. Do your research thoroughly and choose the best funding option.
