Launching a business is a journey you cannot begin without enough funding to get you up and running.
Often times, the money from your savings is too little to start and support a business, or it’s pretty much everything you have and wouldn’t want to risk it all in a business idea.
So how can you launch a business without taking all the risk alone?
Well, these tips by experts from Young Entrepreneur Council (YEC) could hold the answers to that question.
Alternative Ways to Finance Your Business Idea
1. Remodel your business idea to attract private investors
According to Julian Montoya of JM11 investments, perfect targeting and fine-tuning your business model can help you attract funding from private investors.
“If you face difficulties meeting an investor, refine your business model to make it more appealing to would-be venture capitalists,” she explains
2. Explore both Personal and Commercial Sources
“As you prepare to launch a business and develop a solid plan, leverage both personal savings and commercial alternatives like venture capitalists.” Says Justin Lefkovitch of Mirrored Media.
Personal sources can come from pals and siblings.
3. Identify and Gather Free or Affordable Tools
Richard Fong of Ready Green thinks it makes more sense to begin with low-cost solutions that will not ruin your financial bottom line.
Go for strictly what you need and not what you think you need. Trying with affordable tools will also help you learn and grow, he says.
4. Be part of an existing Brand
Joey Berstchler of bitgrit has one of the most interesting yet toughest approaches.
“If you can’t stand alone as an entrepreneur, join an existing brand by suggesting a unique service or product,” says Bertschler.
“The catch-22 here, however is that you must put something on the table. Your idea must really stand out, you must have a proven history of expertise or something tangible like an app or software that speaks for itself,” he explains.
6. Consider flexible funding
According to Blair Thomas of eMerchantBroker, avoid traditional sources of funding that won’t prioritize an entrepreneur nothing to show; like good credit, history in business etc.
Consider flexible sources like MCA or cash advances. If chosen wisely, this product can help a new business manage cash flow problems.
Sometimes going the extra mile, or thinking outside the usual can be your key to success. Consider the above ideas when you are ready to venture.
Michael Hollis is a Detroit native who now lives in Los Angeles. He is an account executive who has helped hundreds of business owners get a merchant cash advance. He’s experimented with various occupations: computer programming, dog-training, scientificating. But his favorite job is the one he’s now doing full time — providing business funding for hard working business owners across the country.