Well, we’re not going to tell you if your idea is awesome, or if you’ve caught lightning in a bottle. BUT, if you need some cash to get your business over the hump, here are a few places to start – presenting 5 tips to help you raise money for your small business, startup or work-at-home enterprise:
- Kickstarter is a great place to start
- Prosper might make sense for you, too
- Friends and Family
- Partnership firms and joint ventures
- And, what if you DON’T need money?
Kickstarter has been around for a little while, and the website lets you post a project – or you can commit to help other people’s projects, too. Here’s an example of one person’s idea: a company called SAVORx that is in a spicy business.
The cool thing about Kickstarter, from the standpoint of business founders and startup executives, is that you don’t have to give up equity in your company. Instead, you can offer special gifts to those who fund you.
AND, the cool thing from the standpoint of those funding businesses? Unless the founders meet the minimum threshold, no money changes hands. (So the SAVORx folks must raise $12,000 or else there’s no money going their way.)
One of the New Frugality Advertisers is Prosper.com and it’s a personal loan business – but it’s peer-to-peer (similar to the Microfinance model you’ve seen in other parts of the world). Lots of the loans there are for people who want to start a business of their own.
ADVERTISEMENT: Here’s our affiliate link to the Prosper site: Borrow With Prosper!
We’ve had folks tell us this category is also called “Friends, Family and Fools.” But, in any event, if you have a business that you’re launching, you can often discuss your idea with family members and close friends and get them to pony up cash. However, you’ll want to talk to an attorney and make sure that you’re doing this on the up-and-up. This means things like how your business is structured, whether this is a loan or debt, and whether there are stock and tax implications for you and them.
(Good luck with that.)
Look to Corporate America for partnering opportunities, and look to the Internet Marketing world for Joint Venture opportunities, too.
There’s a chance that you may not need money – you may instead need to find another business or businessperson who is in the same space and may have resources you can put to use. (It’s all about the win-win.)
It’s possible that you don’t really need the money. How long can you hold out before asking for the capital you THINK you need? And can you fund your business out of cash flow instead?
For instance, if you have a service that would bring in revenues of $1000, do you need to put that $1000 into your pocket – or can you “invest” those $1000 into your business (marketing, a web site, sales help, etc.)?
There’s money out there – creative, resourceful, clever people can find it – or can find ways to work without it.