Some Inventive Ideas for Funding Your Startup Idea
Lots of people have a startup idea. Some of those people actually get serious about owning their own business. Are you one of those people?
Many people hold back on pursuing their startup idea for one reason or another. Often, that reason is funding. You might think you have to have some property to put up as collateral for a loan. You might even have heard that you need to have good credit to get funding for a startup idea. However, in today’s world, there are numerous ways to find the money to start a business.
So if you are serious about starting a business, don’t let a lack of funding stop you. While you will need to be creative, patient, and dedicated to your idea, know that you can do this.
Start with thorough research. You might just find some investors who believe in your startup idea, people who have just been waiting to jump onto a good business idea. However, if you’re not that fortunate, there are other funding alternatives. Read on for more ideas.
Rollovers as Business Startups
Rollovers as Business Startups, otherwise known as ROBS, are a hidden gem. As a matter of fact, most people are completely unaware of this funding strategy for small businesses.
As the name implies, ROBS refers to the use of all or part of your retirement savings to fund your startup idea.
This strategy is not a loan against your retirement account. It’s a rollover. So you won’t have loan payments while you get your business up and running. However, this method does put your retirement savings at risk. For this reason, you should review it carefully before deciding to go this route. Also check with a tax professional beforehand, and learn about about any tax consequences you might face.
Find Like-Minded Investors
If you’re still casting about for a startup idea, a few Internet searches could lead you toward what you’re looking for.
For instance, you might be interested in selling a product such as the ones offered by Friske Drag AS. This is a line of products that can help people quit smoking.
If your startup idea is something like this one, it will be easy to find others who will be interested in getting involved. Therefore, always keep in mind that like-minded investors are out there for you. As a matter of fact, the next person you have a casual conversation with could be the very person you’ve been looking for. What’s more, they could be delighted that they found you, too.
While you’ll be required to give up a portion of your business in exchange for an investor’s money, you’ll be able to get the funding you need.
Apply for Grants
Depending on your current situation, there is a possibility that the government could help to fund your business. This is why you should look into the possibility of government grants.
What’s more, if you are a woman or member of an ethnic minority or both, your business could qualify as a minority-owned or woman-owned business. In that case, there could be even more grant categories in which you could apply.
If you are awarded a government grant, the government will provide you with some start-up money. Grants are not loans, so you won’t have to pay them back. However, the funding requirements are narrow, and you have to apply according to specific guidelines.
Seek out Advisors, Not Just Investors
Have you found someone whose vision is similar to yours? Is this person as excited about your vision as you are? If so, you have truly found a gold mine.
If this is the case, seek to work with this individual as someone who can bring value to what you are trying to create. In other words, strategize with people whose ideas and visions are similar to your own. They can help you take your company forward faster, much faster than if you were working strictly on your own.
Learn to Tell Your Business’s Story
Your business’s story will take you far. As a matter of fact, the story behind your startup idea is much more fascinating than anything about the numbers.
For example, maybe your 4-year-old daughter told you that you were good at something. Her comment led you to create your startup. Or perhaps your startup idea began when your neighbors told you that you that you baked the best homemade brownies they had ever tasted.
How your startup began makes up the essence of your business’s story. Learn to tell your story well, and your startup idea will be able to jump out ahead of the competition. Whatever your situation, the reason you are venturing out on your own is far more compelling to potential investors than just about anything else about your startup idea.
This is because your story can inspire others. When your vision for your startup is beautiful and meaningful—and you tell its story in a compelling way—it has the potential to attract new investors to your business.