4 Things You Can Do To Raise Money to Start a New Business

Each year, thousands of people quit their day job and embark on an entrepreneurial journey. Starting a business will take a lot of time and effort, but it well worth it in the long. If you have a great idea for a business, then the last thing you want to do is wait to pursue it. In order to get a new business off the ground, you will need some working capital. There are tons of way you can raise money for a new business venture, which is why you have to do some research to find the right method to fit your needs. The following are some of the things you can do to raise money for your startup.

1. Self-Funding is Difficult But Worth the Effort

One of the main ways that most people start their businesses is by self-funding. In order to be successful at funding a business on your own, you have to find any means available to raise money. Doing things like selling unwanted stuff can help with seed money for a new business.  You can sell old clothes, furniture or electronics.  Some families have an 2nd or 3rd vehicle that is not a necessity.  Often time, the ambitious entrepreneur will sell a superfluous car to raise cash.

Old jewelry and gold is a great way to get some money to invest in your business. If you are interested in selling gold for,  example, visit Truval in NYC here.  Some entrepreneurs have pondered the idea of pulling cash from retirement plan. This is an extreme measure due to tax implications and also the fact that IRA  savings dollars are what most people use to live off of during retirement age.  If you must pull from a savings account, do so from a bank savings instead of an IRA in order to avoid tax and early withdrawal penalties. If you go to these extreme measures, you need to make sure you put the money back as quickly as possible.

2. Borrow Money from Friends and Family

Many successful businesses have been started with investments from the owner’s family and friends. While it is never easy to ask for help, in some cases it is necessary for you to fulfill your destiny. Usually, friends and family members will be easier to persuade than a bank loan officer. Even if you have to borrow from multiple relatives, it will be worth the leg work you put in due to the fact that it can help you get your business off of the ground. When trying to get friends and family to invest, you need to let them know how long it will take to pay them back and give them details regarding the nature of the business you want to start. You want to keep the meetings you have with friends and family professional and pressure free. If a particular friend or family member doesn’t want to invest, you should take this rejection with a grain of salt and move on.

3. Try to Get Small Business Loan

If you have decent credit, you may be able to take advantage of a small business loan. Before you go in to apply for one of these types of loans, you will have to do some research. Finding a reputable lender that can offer a good interest rate on the business loan you need will not be easy. Getting online and looking at the reviews the various lenders in your area can offer is essential. Once you have this type of information, you will be equipped to make the right decision. Meeting with a few of the lenders in your area will allow you to ask in depth questions about the financing they can offer.

4. Seek Out Venture Capitalists

Another tool you can use when trying to get funding for a small business is seeking out the help of venture capitalists. These firms invest money in business ventures that they feel will garner them a hefty return. In order to get a venture capitalist interested in your business idea, you will have to show them there is a market for the products or services you are going to offer. Showing these investment professionals the earning potential your business has is a great way to get them onboard and get the capital you need to get the ball rolling.

With a bit of hard work and effort, you should be able to find the right funding for your small business venture.

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