Lack of money shouldn’t stop you from pursuing your dreams. If you have a wonderful business idea but no money to power it, look for alternatives. It’s admirable that you want to start your own business and be your own boss.
Studies show that over 90% of businesses fail during the first year of operation because they lack funds. At the end of the day, financial resources are the bloodline of all companies. They all function with a fuel named capital, so if you have no money, you need to look for solutions.

The source of funding deeply relies on the type of company you want to start. In this article you’ll discover some financing solutions all start-ups can rely on.

Ask your family and friends for financial support

You aren’t the first entrepreneur who starts a business with money borrowed from their friends and family. Because you lack experience, it’s difficult to convince investors to power your idea. But your family and friends believe in your dream and they want to help you achieve it. So, there are greater chances to obtain funding from your loved ones than from a bank or investor.

When taking money as a loan from friends and family seek legal advice because you need to establish terms and conditions. Borrowing money from your loved ones comes with a disadvantage, it can sour your relationships if you cannot repay the loan.

Get a business loan

You can apply for a small business loan because many banks designed programs especially for financing start-ups. But because small companies often face bankruptcy, banks are careful when selecting the entrepreneurs that qualify for a loan. When the bank doesn’t approve your loan, you can collaborate with an alternative lending company because most of them are equipped to help start-ups get off the ground.

But before borrowing money from a lending company ensure you know the terms and conditions because they are usually predatory. Ask for legal support before signing the contract to ensure that you don’t commit to something that rips you of.

Crowdfunding

Crowdfunding is a new solution, but you can take advantage of it to fuel your company. The process is similar to the one of borrowing money from one or multiple investors at the same time.

How can you get crowdfunding for your business?

You share a detailed business plan on a crowdfunding platform and share with investors the goals of the business, the plans to make a profit and the investment you need to achieve your purpose. Entrepreneurs can read the the description of business and decide if they want to invest in your company. When investors offer money, they also make a promise to pre-buy the products and services you provide or to make donations. Every investor on the platform can contribute with money to help you finance your idea.

Crowdfunding is a great financing solution because it also generates interest. It helps you promote your products before manufacturing them. You have a public that waits for your products to get on the market. It also reveals if there is a public for the products you want to create. Often, funding comes in the hands of common people. People like you and me are the ones who invest in your idea, not rich people.

But you should know that crowdfunding is a competitive place. You’re not the only young entrepreneur who exposes a business idea to get financing. You’ll get money only if your company has the potential to rock the market and bring a solution to a problem the public is dealing with. Every country has its special crowdfunding platforms, so search online to find the ones in your area.

Trading

Your side-gig can help you save money to start your business. If you are good at analyzing Forex charts and you know how to place a successful trade then you should trade currencies for a time to earn enough money to fund your business.

If this is the first time you are considering FX trading, education can help you acquire the needed skills to trade currencies, so you should dedicate some of your free time to reading and simulating operations. Once you are confident you can place a successful trade you can start looking for brokers. Ensure that the broker you select facilitates trading according to the strategy you choose. For example, when you trade using the scalping method you need to choose a low spread broker. If you use any other strategy you should choose an offshore broker because Belizian FX brokers offer nice trading conditions.

FX trading can earn you a great profit when you carefully plan each investment. If you have a full time job that pays your bills, your side-gig can help you save money to fund your business.

Get an angel investment

Many times, people with great income decide to invest in start-ups they consider profitable. Each angel investor supports businesses in a domain they have expertise in because they analyze the business plan before offering funds. Angel investors operate in groups and networks to collectively screen the proposals they receive, and choose the ones they will invest in. The great benefit when collaborating with angel investors is that they have experience and they can provide both funding and mentorship. Advice is highly useful for a beginner entrepreneur.

You may find surprising to know that angel investors are behind some of the most popular brands. Alibaba, Yahoo and Google were projects funded by angel investors, who considered those business ideas profitable. However, as all funding solutions, angel investment also has some shortcomings. Angel investors usually invest lesser amounts than venture capitals.

If you want to send a proposal to a network of angel investors check the ones that perform in the industry you want to operate. They will analyze your business plan and if they consider it intriguing, they will probably offer their support. Even if they don’t provide money, one of the angel investors may want to work as a mentor to help you improve your idea.

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