(Newswire.net — July 7, 2017) — So, you’ve got the idea. You’ve got the business plan. You’ve got a list of potential clients, and an inkling that you’re going to do fairly well. However, you don’t have the money. For many people who decide to set up their own business, there isn’t a pot of money waiting in the wings. Many don’t have a lump sum of savings to use, nor are they in a position to get a huge amount of money in a short space of time. So, what can you do? If you’ve tried the ordinary routes, like applying for a loan, and that hasn’t worked, or you simply don’t want a loan, then what? It means it’s time to start exploring different options – not time to give up on your business.
Seek out experienced help first
If you’re struggling to find funding, it’s a good idea to run your proposed business plan and budget by someone with more experience. There might be something in either document that’s putting potential investors off. You won’t know this until you try it, or until you’ve experienced it yourself. You can try speaking to a small business advisor, or get in touch with someone who’s already founded their own business. Another great idea is to join a mentor scheme. You’ll be paired up with someone who’s achieved start-up success, and not only will you be able to use them for ideas on finding funding, but they’ll be able to guide you on all sorts of matters.
Explore alternatives to loans
Once you have been going for a while, more doors open: it’s possible to get a sizeable injection of cash into your business, without having to go to the bank for a normal loan. You could try a merchant cash advance. You’ll get an upfront payment – and normally it’s very fast – before you repay it using some of your credit card transactions. Plus, because it’s not a loan, you normally aren’t required to submit any personal guarantee or collateral. Or, you could try using a credit card to pay off your initial needs, but you’ll need to work hard to find one with low interest, and a big enough limit to ensure you aren’t trapped or run out of money before you’ve got everything that you need.
Find a partner – silent or otherwise
If you think you’re onto something amazing with your business, then why not look for a business partner? If it’s something that you think other people will want to be part of, you should easily be able to find a partner to help support you financially, in return for joining the company at C-level. If you want to remain more in control than that, then look for a silent partner. Then you can reap the benefits of having an investor involved, who’ll be on hand to help, without losing complete autonomy over your project.
Apply for grants
The last option to try is external investors. There are many grants and bursaries available to start-ups, depending on what sector you’re in, the background you come from, what your aims are, and how you plan on working. Look for as many suitable grants as you can, and spend time applying to them all.