How To Find Money To Fund Your Business
There’s no way around it–it takes money to run a business. If you don’t have money to invest in your business, you don’t have a business.
Although there are ways to build your business that require less funds in the beginning, and smarter uses of your money, there are expenses involved with running EVERY business. If you don’t accept that and start operating from a business owner’s mindset, you WILL NOT make it.
And, you must take 100% responsibility for funding your business. That means figuring out the means for initial and ongoing funding. Once you start to make a profit from your business, you will need to keep reinvesting part of your profits into further growth. But the bigger you grow, the more you will need to invest.
Here are 8 ways to raise initial or ongoing capital. If you can’t find at least one that will work for you (or that you are willing to utilize, even if it means sacrifice or being uncomfortable asking), then you are either not really as committed to making your business a success as you might say, or you will have to go it the long, slow, painful road of “on your own.”
1. A traditional loan from a lending institution (bank, credit union).
a. Local banks and credit unions are more likely to approve loans to small businesses than
larger conglomerate types of banks.
b. The Small Business Association (SBA) can also be a resource for finding or securing funding,
including microloans, especially if you are a woman-owned business. Get more details and
2. A non-traditional loan from a family member or friend. Ask yourself who you know who might be willing to support your dreams? Someone who has proven to be there for you, encourage you, and support your aspirations? Another entrepreneur/biz owner who has become financially successful? Although it can feel uncomfortable to ask for money, share with them what it is for, what your expectations are for your return on investment, and your
plan for paying it back. Make sure to create a payback contract that both parties agree to and sign; then do what you need to in order to honor it.
3. Credit card(s). You may need to split expenses between credit cards or apply for a new one. Remember, that is “good debt” not “bad debt” because you are using it to fund the growth of your business (including business coaching/education expenses). Be open to this resource even if you have had a problem in the past with credit cards because of irresponsible spending habits. If you have a good enough credit rating to get a card but don’t want to incur credit card debt, you are shooting yourself in the foot and cutting yourself off from a viable and helpful funding resource.
Trust me, that mentality held my business back for the first 3 years; once I cleared my resistance and fear around this, I was able to finance my first coach, who helped me DOUBLE my income in 6 months (and pay off the credit card balance). And I continue to do so.
4. PayPal Credit. If you are working with an online provider for your business needs, they might offer payments through PayPal and their Credit (formerly “Bill Me Later”) program, where you can defer payment for 6 months. I offer this option for my clients. Since our goal is to get them earning more money with their business as quickly as possible, they have time to do that before they have to start paying, yet I receive my fee from PayPal right away.
A win-win! (Learn more here)
5. Savings. A bank account, CD, retirement account, savings bonds. Sometimes you have to “break open the piggy bank” in order to fund your dreams. Let your commitment to making your business successful (so it can take care of you in your future) trump your fear of “not having a safety net.” Lack mentality is one of the #1 killers of business growth.
6. Investors–people or businesses that give you money in exchange for returns from your business, such as in a percentage of profits. A recent, non-traditional investor resource that has popped up thanks to the internet, is Crowdsourcing/Crowdfunding. A fairly new concept, this is a way to use the internet get “micro-infusions” of cash from strangers who believe in what you are doing enough to “gift” you money. Do a search online for sites that
help you do this, like http://www.gofundme.com.
7. Selling items you own. What are you holding on to that is less important than building your business? What are you willing to sell to fund your business expenses & education now so you can buy whatever you want with all the money you will earn with a successful, profitable business? I’ve had clients sell water sports equipment, old jewelry (even sentimental things), deceased wife’s wheelchair, expensive handbags, golf clubs, even their own blood plasma! Make some sacrifices for the higher good. Once your business is successful, you can buy more of those things–even in cash! Or you might find you don’t even miss them.
8. Non-traditional business loan–a JOB. Sometimes you need to fund your business expenses with a steady and reliable paycheck, whether it’s something part time or full time. Don’t look at this as defeat or a “prison,” think of it as a temporary, non-traditional loan to invest in your future.
9. Cut back on some non-essential expenses/consolidate expenses. Where are you spending money on things that aren’t helping you to grow your business/realize your dreams? Extra cable channels/cell phone features, eating out/daily Starbucks/alcohol, sugary “treats” that add to your waistline and health issues, name brand clothes/toiletries/essentials, weekend trips/expensive vacations, unnecessary purchases to “keep up with the Jones'”?
Ask yourself what you’re willing to cut back on or give up–at least of a while–to free up funds in the short-term so you can have the business you desire in the long-term. Most people have a good amount of “fat” they truly can cut if they are honest with themselves. Create a budget for your expenses (personal and business), make some cuts, and reallocate funds.
10. Your creative idea here…
Now, some of the things you may need to do to fund your business will take effort and/or be uncomfortable, but you must be willing to do whatever it takes, even if it’s uncomfortable or requires sacrifice, if you are really committed to making your business work. Remember, if having a successful business was easy, everyone would do it! Are you committed to creating a successful business, or just interested? Is this a serious dream or “must-do” for you, or is it a nice hobby or “like to”? Your answer will prompt what you do with this information.
Are you serious about making your business work? Are you just INTERESTED, or are you COMMITTED–and willing to do what’s uncomfortable or hard? Are you willing to invest the resources to be guided by an expert who’s done it herself? Schedule a complimentary Business Assesment Session with me to identify which of the three keys of creating a successful business you are missing–Marketing, Mindset or Manifesting principles–and IMMEDIATE steps to take so you can get more clients and make a difference in more lives!