You are starting a business and you don’t want to obtain a loan for financing it? Here are some ideas to finance your startup using other means:
Many products are developed while giving a consultancy. Being a part of the industry gives an insight of its problems and niches which otherwise you may not be able to see. So, blend your product with consultancy and let that pay for your startup.
Approaching Friends and Family
There is no one in this world that trusts you more than your friends and family. These people can help you no matter, because they believe in you. That is what you require in the initial stages.
There support can be a huge help both in monetary and non monetary terms.
Participating in Competitions
There are many platforms available for entrepreneurs to take part and benefit from. Business plan competitions of various types keep taking place. Keep a look out for those and participate with the motivation to win. These competitions are there to promote new ventures and provide winners with the initial kick-start money that they need.
Before diving into starting your business, make space and set your priorities right. Do away with all the things you do not need and are unnecessarily lying around. This will not only gain you some cash but also provide with the necessary space required for setting a workplace.
This may not apply to every business or startup. But, depending on how creative you can get, try to monetize on every effort that you are making. Maybe your prototype product could be sold to people. The research you conducted for your business could be developed in an E-book and sold. Your knowledge and skills could land you a job as a visiting faculty. All these steps can earn you some side cash to put into your start up.
Using Customer Finance
Start selling you product before you have developed it. Use the cash from potential buyers into making your product. But, be sure to let them know of a delivery date and fulfill it. This will also allow you to test your product and see if there is a potential market.
Just as you have the notion to build a startup don’t jump into quitting your day (or night) job instantly. Use your source of income to save money from it or start putting it into investments which will pay you off in reasonable time. Be sure to focus on both tasks of your job and developing your start up business plan individually so you don’t compromise on either.
All of the above mentioned options will not be easy to apply. Starting a business with no money depends on your commitment and how willing you are to avoid obtaining a loan. Although difficult, these options will save you from the interest payments. The hard work you put in raising your own finance will pay off in later stages as a reward which will be your own to enjoy.