6⃣ Ways to Fund Your Startup
Wealth Z
1⃣ Bootstrapping
👉🏻 One of the most common ways to get a business up and running is through "bootstrapping."
👉🏻 Basically, you use your own funds to run your business.
👉🏻 This money may come from personal savings, low or no internet credit cards, or mortgages and lines of credit on your home.
⚠️ If your business doesn't succeed, you may have a substantial amount of debt that you now need to manage.
2⃣ Friends and Family
👉🏻 Borrowing money from friends and family to help fund your company.
👉🏻 If you go to friends and family for loans, it's a good idea to make sure that each of you gets sound legal advice, especially if you are taking the money as a loan.
⚠️ Borrowing money is a quick way to lose friends and sour family relationships. Be careful if you decide to proceed this way.
3⃣ Small Business Loans
👉🏻 Some banks specifically offer loans to small businesses, but banks historically are careful about giving money to small companies. It can be difficult to qualify.
👉🏻 There are alternative lending companies, however, who may be better equipped to help you get your business off the ground.
⚠️ Some of those alternative lending companies are predatory. Make sure you know who you're borrowing from before you sign on the dotted line.
4⃣ Crowd Funding
👉🏻 If you have a sexy idea and you're great at social media, crowd funding might be an option.
👉🏻 When websites like Kick starter and Indiegogo first started there were a number of businesses that had great success pulling together funding through their reach.
⚠️ Lots of companies aim for crowdfunding, so you have to generate a lot of buzz to make it through the overall signal noise.
5⃣ Incubator or Accelerator
👉🏻 Business accelerators and incubators have sprung up all across the country, particularly near colleges with a strong business program.
👉🏻 These spaces are part communal workspace a d part mentorship development centers.
👉🏻 Young businesses can get a great start here while partnering with some amazing people.
⚠️ They are often focused on tech-heavy businesses, so you might struggle to find one that works for your company.
6⃣ Keep Your Day Job
👉🏻 If you currently have a job that is meeting your expenses don't be in such a hurry to quit your job and follow your business dreams.
👉🏻 Spend d some time getting the business off the ground and building through the early, difficult phases with the solidity of your 9-5 job paying your bills.
⚠️ It is possible that you'll miss opportunities by focusing on your day job and running your company as a side business.