Most entrepreneurs start a business to make money. But you also need money to get that business going. To get this money, most people get a loan, dip into their own savings account, or if they’re smart, they might gather investors. If these don’t work, don’t despair — there are more ways to fund your startup. Here are four alternative ways to get your business off the ground.
If you are an expert in your field (and you should be if you’re starting a business), you can build a popular blog or website and receive money via advertising. With pay-per-click advertising, blog owners can place ads on their blog and get paid every time someone clicks on the ad.
Build a strong following that attracts thousands of readers per month. The most successful blogs and websites earn thousands of dollars each month from advertising alone.
Making profits from natural skills and talents is always an effective way to earn extra cash. As an entrepreneur, you have skills that have helped you to get started in business. Offer freelance consultation services if you have specialized knowledge in any field from law to accounting. Offer courier or rideshare services (like Uber) if you are a good driver.
Find freelance sites (like Fiverr) that provide moneymaking opportunities to writers, accountants, graphic designers, etc. Become more credible by earning a certification in your skill of choice. The lengths of training programs vary from 4 months to 2 years.
Sell Your Life Insurance Policy
If you’re a little further along in life than most entrepreneurs, an unexpected source of funding can be found in your life insurance policy. A life insurance policy works by paying your beneficiary if you die before the term is completed. If you remain alive after the completion, you receive the entire sum. Long before the maturity date, selling life insurance policy is also an option — you will receive less than what your beneficiaries would receive upon your death, but it will be a good amount. Make a life settlement only if you know that you no longer need the policy or cannot afford the premium payments.
Similar to fundraising, crowdfunding works by soliciting funds from large numbers of people. Raise enough funds to start your business if enough individuals and investors believe in your idea. Use this method online by finding sites that support crowdfunding such as Kickstarter, and be sure to explain your project goals in detail.
Securing financing for any major project is a challenge. As the economic climate fluctuates, the act of getting a business loan with the right interest rates and payment terms is difficult. Using a credit card is risky because you could fall behind on payments and accumulate enormous fees. Increase your chances of business success (or at least cut your losses) with a more creative approach to funding.