Creative Ways to Fund Your Startup

You’ve got an idea and you’ve got a plan. You know that your product or service could be successful. So what’s stopping you from getting started?

If you’re like the average person, the reason is probably money. With interest rates increasingly on the rise and job markets tenuous at best, it’s often daunting to think of jumping into a new business venture and even more daunting to think of how you’ll fund it. If your credit is less than stellar and big bank loans seem out of the question, try giving these creative ways to fund your startup a shot.

  • Payday Loans – While payday loans often have high interest rates that prevent you from using them on a long-term basis, they are often much more lenient in terms of credit requirements. If you’re looking for a small amount to get you started, check out the quick loans offered by servicers like Wonga.com.
  • Friends & Family – Maybe your pride stops you from asking for help when you need it, but if you’re confident in the product or service you’re going to sell, reach out to friends and family to get you started. You’d be surprised how willing people are to lend a hand when you’re in need and they’ll be more than grateful when you start raking in the dough and throw it back their way.
  • Crowdsourcing – New websites like Kickstarter and CrowdSource allow you to put your business venture up for the public to fund, including friends and family. While most will contribute small amounts, you’ll likely see a few willing to pitch in a little extra and it will make all the difference. Your project will only be funded if the requested amount is raised in the time frame you choose, but you can increase the incentive by promising gifts or recognition depending on the amount donated.
  • Vendor financing – If you’ve got the idea but lack the goods to create the product you’re going to sell, many manufacturers are willing to cut deals with you so that you’re not required to pay for your supplies until your products have sold. Be wary of this method, however, because if you’re unable to move your product you’ll be stuck with a hefty bill and no money to pay it back.
  • Microloans – With a little bit of research, you’ll probably be able to find a company that offers microloans to people with less than stellar credit scores. Some companies, like Patriot Express and Small Office/Home Office, are willing to give out small loans to promote entrepreneurship and competition in the market. If you’re able to really sell your idea, companies like this are often able to help startups that don’t qualify for traditional big bank loans.

Of course the best way to fund a startup is to be able to pay out of pocket, saving you the stress of owing a loved one money or the hassle of high interest rates. If only we were all so lucky.

Comments: 8

  1. Miquel August 5, 2013 at 3:31 pm

    I’ve been working and putting money aside to purchase a mulit-unit place or make use of the money to purchase a franchise business based on what options were better after i had the money. Well I acquired let go in the factory I had been at and also have needed to use the majority of the money I’d for bills.

    Does anybody are conscious of any mortgage place which will produce financing where I’m able to make use of the earnings in the multi-unit places as earnings ($150k for just two structures with as many as 10 models (7unit along with a 3unit). $2100 in taxes for that pair and $4k earnings per month) or somewhere where I’m able to circumvent $50k approximately for startup money?

    I’ve not a problem obtaining a job. However I would prefer to finaly start doing things i want basically can try to obtain the financing. I dont care when the rates of interest is going to be high or whatever. I simply need assistance finding a method to obtain the financing.

  2. Drema October 15, 2013 at 10:15 am

    We are an ‘idea factory’ concentrating in creative endeavors: screenwriting/character development inventions and brand identity. What is the quickest method of getting individuals to give money for any startup company like ours?

  3. Eveline October 23, 2013 at 8:46 am

    I am 29 and also have always labored hard and was healthy.I had been put unemployed because of work injuries in ’09 and company has refused injuries. I’m on SSDI because of my work injuries and the organization is fighting me around the work comp injuries etc. I understand I can not work full-time any longer and that i can’t quit my disability since i have previously lost the majority of my earnings. I wish to make a move but am still waiting on trial idol judges decision I can not get employment because a lot of limitations and need to be removed by doc plus my credit is shot. How would you react can you try to take voc rehab and work away from home or must i attempt to begin a business. I understand I am not likely to have the ability to work somewhere again and also allow it to be large.

  4. Lauralee November 11, 2013 at 8:50 am

    This isn’t an issue associated with whether government should cut investing or how government stays. It’s a possible alternation in our tax system. So please share honest ideas instead of opinions on investing guidelines (because we all can agree that there must be some cuts in certain regions of investing).

    Lately, Fareed Zakaria authored articles in regards to a possible means to fix the controversy over taxes. He outlined that the country absolutely should have some type of tax revenue to visit certain programs. The main problem with raising taxes on companies is the fact that greater taxes could lower competition inside a global market. With nations like China growing in an exponential rate, it’s imperative that people try to compete. He suggested this:

    Rather than raising taxes on companies, we implement a federal florida sales tax. A federal florida sales tax is preferable to tax because when there’s high unemployment or wages are reduced a poor economy, the federal government does not see a large amount of revenue because there’s less to tax. By mainly depending on revenue from tax, annual revenues tend to be harder to calculate for economists. So when revenue is harder to calculate, allocated government investing for following years is harder to calculate and see too.

    A national florida sales tax will bring tax revenue that’s much simpler to calculate for economists, which may allow economists and political figures to precisely structure investing guidelines for following years. It might also assist in preventing consumer irresponsibility by investing a lot more than they earn on and on into debt (which carries long-term implications to have an economy).

    Previously, consumer investing designed a large improvement in the sustainability of the strong economy. However, because we have been in a worldwide economy, consumer investing doesn’t pump money-back and circulate inside the U . s . States. The cash would go to companies based overseas, helping other nations (i.e. you purchase an LG television also it benefits a South Korean company and also the South Korean economy).

    However the possible bad thing is that for a national florida sales tax to work, it would need to be for a price with a minimum of 20% on all goods bought. This might hurt startup companies that require to buy supplies try not to have lots of money. And 20% on everything they purchase will be a very hefty additional cost for them.

    Appreciate your ideas. Much appreciated!

    @I Love Males Now. This proposal involves lowering tax and changing an increase in tax having a florida sales tax. Not really a florida sales tax on the top of the raise in tax. And then any country needs some type of tax revenue. But interesting response just before putting any real thought in it.

  5. Anthony December 7, 2013 at 6:38 pm

    Does any country offers high rates of interest on savings or any other accounts? I’m within the U.S. in which the interest compensated is under 1%.

    I recognize I might must see another country personally to spread out a higher interest account but it’s worthwhile if you will find nsa.

    It’s under 1% within the U.S. on savings. Most likely just a little greater having a 12 months Compact disc account.

    I personally use Westamerica bank, it’s a California bank.

  6. Nakita December 10, 2013 at 2:15 pm

    Would rates of interest of Treasury investments suffer, and when just how?

  7. Elbert December 12, 2013 at 3:46 pm

    I wish to begin a small resale store type of like Goodwill. I’ll resale clothing, tv sets, footwear, just general things. I’ll be accepting donations.

    I believe I’ve everything determined but I wish to request to be certain. This is actually the listing of a few things i think I ought to do and everyone can comment or increase my list.

    A title which i’ve determined already

    An area, Little Rock, Arkansas

    A florida sales tax permit

    A company permit for selling second hands goods

    A accountant

    I additionally curently have enough merchandise to serve you for a year. I am going to auctions and purchase stuff so keeping method is no problem. Unless of course my capital will get low that is things i don’t want to occur.

    My greatest fear is beginning the company and sinking each year or perhaps a month or perhaps a week even. I don’t want to become yet another not successful business proprietor. I should also know can there be ANY given, condition, private financial loans or grants or loans that may be acquired to obtain a home based business loan?

    Just replies and suggestions. Dakota

  8. Johnny June 17, 2014 at 12:39 pm

    I’m a great prepare, I really like cooking and i’m always requested to cater a celebration. I would like to open a coffee shop in the Marina within my hometown, but I haven’t got money and I’d rather not get into debt. I additionally don’t know how to start doing research or crafting a highly effective strategic business plan that’s simple. Help me know where to start and just how to become effective as opposed to a mistake.

    I actually do possess a degree, although not in culinary and that i can not afford culinary school although it’s a dream.

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