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Startup Capital: How To Raise The Funds You Need

Everyone has heard someone say, “it takes money to make money”. This hits hardest to those who decide to take a lead into entrepreneurship. If you want to start your own business but funds are looking a bit off, there are some ways to gain the funds you need, both conventional and unconventional. All of these methods work, when worked right.

The Traditional Route: A Business Loan

All you need to get a business loan from a bank is a tight knit business plan. You can get one written from $500 and up, but you’ll need to beware that the money you spend on your business plan also reflects the quality you’ll be receiving. If you want to open a storefront and only have a portion of the money to do it, it would be wise to spend that money on business credentials and a business plan written by a professional. This plan will help you do more than get money, however. It will also lay out every detail of how you will work your business, which makes it even more useful to you in the long run.

Crowd-funding

Crowd-funding is a pretty new concept and it’s completely Internet enforced. Crowd-funding is the presentation of your business idea to the general public on a crowd-funding site like Kickstarter.com or Smallknot.com, and whomever likes your idea will donate to it. These donations aren’t free! You’ll need to promise them something in return should you reach your goal, and you’ll also need to follow through with these promises. Don’t worry though, many businesses promise something as simple as a signed post card and get donations, but the bigger the donation the bigger the prize upon startup.

Start Small

If you’re offering a service or even some products, there’s no such thing as “too small”. Small business is small business, and it’s okay to start in a smaller place than where you want to be. For instance, if you want to start a yoga class, it’s okay to start out charging for individual sessions with a few people you know until you save up enough money to go bigger. If you market yourself right and offer quality services and products, eventually you’ll have plenty of clients/customers who will provide financial support to help you take your business to the next level.

There are plenty of other startup options as well, such as private loans, offering a smaller product online, doing an online-only business, etc. You simply need to find the right option for what you’re trying to do. Not having enough startup money doesn’t mean you don’t start up, it means you rework your plan so that you can either make more money or make better use of the funds you already have.

Now you have a few ideas to get you started. The most popular route is to use crowd-funding because it’s free money and it’s a marketing strategy at the same time. It’s a very wise decision, but whatever you do, just remember that you have options.

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