Entrepreneurship is expensive. You need money for a plethora of things, from renting or buying a location to creating your product or service. If you don't have the funds to do it, starting a business can be tough. However, it's not impossible. There are various ways today to get your company off the ground, such as the methods below, even if you don't have money of your own to do it.
1. Relatives
While they shouldn't be your first choice, friends and family are great to ask for donations and loans. However, don't approach them without a plan. You should treat them just like every other potential investors. Present your business plan to them, including products and services, expenses, cash flow and potential revenue, Deborah Mitchell of Deborah Mitchell Media Associates, LLC, told Entrepreneur. You can also offer them shares of your company as an incentive for investing, but make sure you keep enough for yourself to ensure you're still majority owner.
2. Crowdfunding
People love to invest in products and businesses that they think they'll love. Crowdfunding options, such as Kickstarter and GoFundMe, give you the opportunity to explain to potential customers why your business matters, Mitchell said. The more you show that you're passionate and what you can provide for your consumers, the more people will believe in you, leading to funding.
3. Financial institutions
While this option comes with paying it back plus interest, it's not a bad one. Commercial loans are great for people looking to jumpstart their businesses. With this method you may find it a little more difficult to acquire funds, according to Mitchell. However, if you go in with a business plan and future projections, you'll be more successful.
4. Free resources
Just because you need money to run a business doesn't necessarily mean you need it to start one. Depending on what your product or service is, you could easily begin using free resources, such as WordPress or Tumblr. Many well-known companies use WordPress, which allows free customization, for their websites, the National Federation of Independent Business explained. You can also get access to free financial services through universities, the U.S. Small Business Administration and the Startup America Partnership. While you'll need money to get your company further off the ground, you don't have to have a lot of it to become an expert in your field.
While money is important to get a business up and running, the lack of it doesn't mean you have to put your dreams on hold. There are various options to get the funds you need without stressing yourself out.