Look for different creative business financing opportunities?
Building a profitable business is not an easy task especially if your business is brand new. One of the most common challenges entrepreneurs face is the lack of funding or start up capital. A study by the National Small Business Association (NBSA) in 2015 reports that 27% of businesses surveyed are not able to secure the funding needed to grow their business. That means 1 out of 4 businesses lack the necessary capital for marketing and bringing in a solid team. This creates a negative strain in their business that often times leads to cutting costs or laying off employees. This could slow down any type of momentum or even completely stop it. Not having enough resources does not mean it’s the end of everything. The lack of resources can be solved through resourcefulness. By being open to creative business financing opportunities and taking action, the odds of securing the funding needed is greatly increased.
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As you continue reading this blog post, you will discover 7 creative business financing opportunities that will help any business secure the funding and resources required for growth. What you learn will help you create momentum and much needed progress. Let’s start getting into it.
7 Creative Business Financing Opportunities
Crowdfunding is starting to increase in popularity. According to Forbes.com, a staggering $5.1 billion were raised by crowdfunding sites in 2013 alone and it’s rapidly increasing each year. Imagine being able to get support from complete strangers where they help you gather funds so that you can make your dreams and goals a reality.
By painting a picture of your vision and goals for your audience, you are able to attract and get support from like-minded people. Successful crowdfunding campaigns also create really interesting and compelling success stories. There are 9 different ways on how you can create successful crowdfunding campaigns; you can read it here.
2. Friends & Family
The beauty about asking help from friends and family members is that there’s already an established level of trust. What you’ll need to do is paint the big picture, relay how they can benefit from that project and to work extremely hard making sure that you deliver on your promises. These people can become major contributors in your business especially if they’re 100% all in. Your business will not only secure the necessary funding but you’ll also get a lot of support in the process.
Because there is already an established level of trust, it’s absolutely critical that you make sure not to ruin that by not delivering on your promises. It’s important to create clear and realistic expectations especially during the growth process.
Friends and family members will not always say yes to everything. That’s normal. What’s important is that if there is no agreement made, you respectfully move forward and take a look at the other creative business financing opportunities.
3. Funding Partners
Getting out there, networking and building relationships is very important. You never know what to expect when meeting new people. Most of the time, new opportunities may arise especially when you meet someone who has the same exact vision and goals as you do.
By having a clear discussion sharing important details, you can work on a mutual agreement. Having a business/funding partner can be a game-changer. If funding was a weakness, then by bringing someone with funding through the door you immediately solve that issue. In addition, you’ll have more brain-power in your team. This would be very beneficial when brainstorming for various growth solutions.
Just make absolutely sure that all the details are clearly discussed and understood. Make sure that all the contracts are agreed upon and signed. There needs to be a mutual agreement especially in terms of operations.
4. Lifestyle Change
Part of being an entrepreneur means giving up and sacrificing a few things now in order to enjoy a whole lot more later. Take a look at yourself and how you live. Are there things that you can cut costs on or maybe even eliminate? Maybe instead of eating out every single day, you can cut it down to once or twice a week? Maybe you don’t need cable right now because you’re busy focusing on growing your business.
Try and see on how you can make changes in your lifestyle that will add more flexibility not only in your life but your business as well. Remember, small things add up. Think about a daily cup of coffee. It’s usually around $4. If you’re the type of person who gets that every single day, then $4 X 30 days = $120. Do you know what you can do with $120? If you invest that in Facebook advertising, you can expand your reach and start generating high quality leads.
You don’t have to completely give things up, unless it’s something that you believe needs to happen, all you need is to make sacrifices now so that you create stability later. One popular quote that I’ve heard before says “In order to create stability, you need to go through a period of instability.” Otherwise known as sacrifice. It’s an uncomfortable feeling but if you set your mindset and priorities straight, it will pay off dearly in the future.
5. Credit Cards
While it’s not always the smartest way to go but credit cards can help you get a good start. As long as you’re disciplined enough with the spending and paying due bills, this could serve you well. The beauty of using credit cards is that the monthly payments are usually low. If you have good credit history and you pay your bills on time, you are most likely eligible to apply for credit cards. Just watch out for interest rates, costs and make absolutely sure 110% you do not miss any credit card payments because if you do, your debts can rise quicker than your growth. That’s the last thing we’d want to happen, wouldn’t you agree?
If you’re starting out and all you have in terms of funding is a credit card, then find inexpensive ways on how you can gain more exposure and traction. Today, the best way to get that done is through Facebook advertising. You can start with as little as $5/day and see results. Typically, $5/day will expose you to 850 highly targeted people per day. Give it a few weeks of constant advertising, you’ll be able to slowly start generating leads and sales. As you’re monitoring your results and seeing that you’re profiting, you can start slowly scaling up your daily budget. If you want a low cost yet very effective way grow your business, Facebook Advertising is the way to go. If you run $5/day for 1 month ($300/month), then that means you’ll be exposed to 25,500 highly targeted people. Now how’s that?
This blog post is all about creative business financing opportunities. This one, is definitely very creative. If your budget is currently tight and you don’t have much to spare, then why not look for a roommate? This helps you split the costs. You are able to pay half the rent and half off all the bills you’ll need to pay. You’ll save a lot of money and that money is something that you can use for your business.
Instead of taking everything on solo, you are able to split the costs saving you literally hundreds…maybe even thousands of dollars. Call up a friend or family member and see if they’re interested in staying with you. More money saved is more money that you can use for your business.
7. Garage Sale
While it may be hard to part ways with some of your valuables but doing so can open a lot of doors for you. A good old fashioned garage sale can really make a difference. Keep in mind that you own things that people will most likely purchase. You need to see the bright side of this. Sacrificing now can help turn your business around and create serious momentum.
Today, we have eBay and Amazon that can help us sell our old stuff. If you have old magazines, cd’s, movies, video game consoles, etc., you can start selling these online and even profit from it. This could also potentially become a second source of income for you. This should definitely not be ruled out as an option.
Conclusion: Finding creative business financing opportunities is not too hard if you’re resourceful enough.
Be resourceful and take action. Realize that with the proper mindset and work ethic, everything that’s happening now is only temporary. See the big picture and do whatever it takes to get to where you want to be. That’s the life of an entrepreneur. Sacrifice now in order to create a better life tomorrow. It takes money to make money. Use these creative business financing opportunities to your advantage.