Starting a business can be exciting, stressful, and expensive. Before you quit your day job and take out high-interest loans to start your business, you should look at alternative methods to getting started.
One of the most common reasons why most new businesses fail within their first year is not researching the market correctly and going into debt before making money. Before jumping into any type of business, there are many necessary steps that you’ll want to take to ensure the success of your new startup.
The last thing you want to do is start a new business with debt, and taking out a venture capital loan will likely keep you struggling to make ends meet the first few years of going into business. However, there are many different ways you have to fund your business that will prevent you from going into debt.
We often think big, and our vision usually starts with our success in mind. Thinking big is a great goal, but for many, it leads to skipping a few necessary steps when just starting out. Being realistic with your goals and expectations will help you make the right steps to obtain that big dream.
In today’s world, just about any business can be run from your kitchen table. This eliminates the need for expensive rent for office space or even a storefront.
As a business owner, you’re responsible for every aspect of your daily operations. Building a business from the ground up takes time, dedication, and commitment. You’ll find that you’ll wear many hats – the marketer, the salesperson, the accountant, and more. Learning how to build a sustainable business is possible, but it’s essential that you start it without the unnecessary overhead and high-interest loans.
Here are some great alternatives to vector funding or other high-interest loans when starting your business,
Crowdfunding isn’t only a great way to get money without interest; it’s one of the best ways to determine if there is a demand for your product while building excitement for your upcoming business. Your potential customers are investing in your business, and in exchange, they’ll be the first to get your product or offer discounted prices for your future products.
There are a handful of good crowdfunding websites such as Kickstart, Indiegogo, Crowd Supply, and Crowdfunder, just to name a few. Take your time looking at the different platforms to find the one that best suits your specific needs.
Don’t quit your day job. It sounds counterproductive to some, but continuing to work until you have enough clients or making enough sales will ensure the success of your business. This will allow you to continue to put any money you are making back into your business to grow it faster, without the stress of making ends meet. Once your revenue is sustainable, it will be time for you to quit your job.
Pitch competitions. Pitch your product idea and get the funding that you need. These pitch competitions are similar to grants, but what makes this a great choice is the exposure you’ll get when you win. It will jump-start your business in many ways. You’ll need to find out the dates for the competition to enter the contest.
Here are a few to start with, Hatch Pitch, TechCrunch Disrupt, and WebSummit PITCH.
Sell your assets. Most of us have something that we can sell that will give us the money that we need to get started. Many of us have expensive hobbies that we may have to put to the side while building a business that might be precisely what will give you the startup cash that you need – music instruments, an old car, baseball card, or pokemon card collection, and more.
These methods will take some time to raise money, but none of them will put you in debt. If you cannot wait, consider using a platinum credit card with no APR for a certain amount of time. This will help you get started while providing you with time to repay before the interest kicks in. Just make sure that you only use it for exactly what you need, and you’ll be able to pay it off before the interest kicks in.