Looking for Innovative Ways to Obtain Funding For Your Business?
Running a Business, or Starting a new business comes with an array of challenges. At the top of that list tends to be finances. You’ll need some income to support your early business activities, and, as you grow, you will need additional capital injections, from time to time, to help with marketing, acquisition, payroll, investments, etc. But, how can you raise this money if you have projects that banks will not finance, or no equity or collateral, or even if you don’t have many customers yet? Here are seven innovative ways to fund your business, investments or anything else that you need funding for:
Hire a Consultant to help you raise capital and obtain credit
Hiring a consultant to help you through all of the intricacies of fundraising may be one of the best investment that you make towards funding your business ventures, start ups, real estate and investment acquisitions, etc. A consultant can get you money that you can use towards almost anything, usually at low introductory interest rates, as low as 0.00% for 12 months. A business credit consultant can help you obtain revolving credit lines that you can use, pay off and use again, without having to re-apply!
Crowdfunding is an incredibly popular way to raise funds at the moment, and it’s not hard to see why. It harnesses the power of social media and your existing connections (friends, family, existing customers, etc) to get your business off the ground. Exactly how you do this will vary, and there are three main types of crowdfunding campaign:
- Donation-based – relies on donations, without offering a reward to investors. This works best if you’re offering a charitable solution, or something with clear benefits to those investing.
- Reward-based – this gives something back to investors, such an exclusive product or a name in the credits (e.g. for a film or musical piece).
- Equity-based – this provides investors with a share in your company, and operates similarly to the traditional investment model.
Information products enable you to use your existing knowledge to generate passive income for your business. Typically, this involves selling an e-book or white paper from your online platform. To succeed, make sure you’re offering something different, and publicise your new product with your existing clients, and through social media.
It’s possible to generate revenue before your product or service is ready, by offering a pre-sale to interested parties. This can provide your new customers with the very first, exclusive use of your product or service, before it goes on general sale. If you choose this route, you must be certain you can fulfill the presale orders and minimise any risk involved with your business.
If you advertise other products or services on your website, and get a good amount of traffic, affiliate marketing can be a good way to generate some additional income. Exactly how you do this will vary, depending upon the platform you use. Typically, you’ll be paid a small fee each time someone clicks on a link, or purchases a product from the target website.
Blogging is now a fantastic way to generate some additional income, either for your business or personally. To do this, you need to build a website with a good level of traffic, and provide useful, engaging and informative content that ensures people keep coming back to your blog. Once you’ve done this, you can profit by posting guest posts, writing content for others, or providing sponsored posts for people who wish to promote their products or services. For an example of this method in practice, check out Parent.Guide – a parenting website that has generated income to fund its growth using online content.
If you’re having difficulty raising funds, but need to get something done quickly, you can barter using your own products or services. In this scenario, you’ll receive goods or services in exchange for goods or services, taking money out of the equation. Again, you’ll need to think about what you have to offer, and come up with a strong proposal for your target business.