Innovative Ways to Fund Your Small BusinessNick Throlson
Every business starts somewhere. While some are blessed with unlimited funding resources, others sometimes fail to be successful because their lack of funds limits them. If you are a small business owner facing the same problems, it can be easy to feel as though the playing field is not level. However, that isn’t to say there aren’t reliable ways of funding your small business. You may have tried all the traditional methods, such as crowdfunding and applying for bank loans, but there are luckily some more innovative methods you can try to get your business off the ground.
Attract an angel investor
You will be familiar with attracting investors to help fund your business, but lots of these are investing because they want to see healthy returns on their money. Angel investors are so named because they invest their own money into a business when they believe in a product or want to see entrepreneurs succeed in the industry. Angel investors come in many shapes and sizes, varying from other business owners to those who have read about what you do and want to contribute towards your success.
Find a venture capitalist
Venture capitalists are also becoming a popular funding source for many small businesses and start-ups. They only invest their pools of money into businesses that they can see reaching high levels of success in the years to come, as this means they will see a higher return on their money. To find one, you should have a truly polished business plan and product, which people can see booming in the future. Ultimately, you are still giving these venture capitalists a stake in your business, but this is another handy way of ensuring the people who are investing in your idea are ones who believe it could be successful.
Invest in real estate
When you are hoping to get money for your business, you may look to investing as a way of channeling your returns into areas that need it. Real estate investment is something that has usually been quiet and inaccessible, due to the time and money that must go into remodeling and renting out properties to risky markets. Recently, it has become easy for everyday investors to begin making money, where all the hard work is removed, but you can still see a reliable profit come into your bank every month. Rich Uncles investment review can help give you an insight into just how this new form of real estate investment can fund your small business.
Profit from pre-sales
If you have a warehouse full of stock that is waiting to be sold, this is where profiting from pre-sales could be a good idea. Not only can this guarantee sales from customers, but it means that you can whip up interest within your consumer base on what is to come. Often, it is unlikely that you will have enough product in your warehouse to cover pre-sale amounts, but the money you get from pre-sales will allow you to make more stock, hopefully within the limited timeframe.