Money is an essential part of launching and running a startup. Unfortunately, startups are inherently unproven projects, so it’s incredibly challenging to find funding sources that will believe in what you’re trying to accomplish. There may be no shortage of people who tell you “go for it,” but getting those people to write you a check is another matter. However, there are some ways to find funding for your startup. Here are a few to try.
Kickstarter is a crowdfunding site that is worth the time you have to invest to get your campaign going. Many successful companies got their start on Kickstarter, and there’s no reason to think you can’t too. There are lots of free resources on the site that help you design and organize your funding campaign so it has the best odds of working, and you should take advantage of all those tools.
2. Family and Friends
If you have a large family and a wide network of friends, you could consider asking them to invest in your startup. Many people miss this option because they feel awkward asking friends and family for money. But if you approach it in a business-like way, it’s perfectly legitimate. Draw up promissory notes for anyone who invests and be sure to offer interest so the contribution is a true investment. . Alternatively, you could sell part ownership in the company in return for a small investment.
3. Second Job
Another often-overlooked source of funding for a startup is taking on a second job. This will work if you need a thousand or a couple of thousand dollars—not if you need hundreds of thousands. This seemingly arduous source of funding has a lot of benefits. The money is yours, so you don’t have to pay it back, pay interest on it or trade ownership of your startup to use it. Another benefit is that it’s an unlimited supply. As long as you’re willing to work the second job, the startup money will keep coming in.
4. Venture Capitalist
There are lots of wealthy individuals who are looking for interesting new investments. They are called venture capitalists. They are often drawn to startups because of the novelty and the excitement of getting in a company on the ground floor. The trick is to find the venture capitalists, because they don’t exactly hold big seminars. But if you keep digging and do your research you will find them. One tip is to become a community member of startup networking sites. VCs also belong to these communities because they want to find deals as much as you want to find them.
These are four viable ways to find funding for your startup. There are other ways; the more creative you get, the more money you’ll find. Be patient. It may take you months or even a year to get the funding you need to finally launch your startup. But your patience and perseverance will pay off.
“Remember, wealth has nothing to do with money, success has everything to do with failure and life is as simple as you make it!” – John Dessauer