Whether you are a freelancer or a startup, there will come a time when you need to boost your business with a cash injection. You might need to run some advertising campaigns, or maybe you need a new computer? Perhaps you’re desperate to make a move to your own business premises, or maybe you need to hire some temp workers to get you through the holiday season?
There are dozens of reasons why your business needs some extra cash. Unfortunately, you might not have dozens of sources of that funding! Still, there are some easy places to start finding the cash help you need. Here are just 5 of the best sources of money that might help you get your business where you want it to be:
Bank Of Magnificent Parents
Your parents, friends, and family are often the best place to start. They’re more likely to have an interest in your company than outside business investors. They’ll also trust you to spend it wisely. Perhaps they’re worried you’re working too hard and would be willing to help you out by working for you for free? Or maybe they’re keen to get a piece of the pie? If your business looks like it’s going places, your friends and family might be interested in becoming partners in return for a share of your profits.
It’s important you consider the terms of any cash boost carefully before you even ask for the money. You don’t want to be caught off-guard with any proposals or refusals they might come up with. Know how far you’re willing to go, how much you absolutely need, and what you’re willing to sacrifice to get it. As much as you love these people, this is your business, your dream, and your journey to success. Don’t give it all up.
Of course, the best place to find the cash you need is you. You might still be working part time or full time to make ends meet at the moment. That’s normal, and it keeps food on the table while you’re getting set up. After all, it takes time to find clients and customers. And it takes even longer to see a regular revenue stream from your enterprise. Can you justify a pay rise or a promotion at work right now? If you haven’t had one in a while, why not put a portfolio of your work together and propose it to your boss?
If you’re finding your finances are a bit of a mess, it’s really important you clear that up before borrowing any more money. Credit cards are often the biggest problem. With the temptation of minimum payments, there is a chance you might never pay them off. If you find you’re using this facility often, it’s time to stop. Get some consolidation advice and get rid of your increasing debt immediately. A single monthly payment tidies up your finances, and it should be lower than your current accumulated commitment. Best of all it should clear it all off a lot quicker!
With that extra cash in your pocket, you can purchase the essentials, and put the rest away to get out of debt. Once you’re clear, you’ll have even more to invest in your business. Hopefully, by then, you’ll be seeing profits coming in. If nothing else, you can at least cut back your employed hours so you can focus more on building your business.
Many businesses approach their bank for an overdraft or a loan to cover the cost of expansion. There are many things that a bank wouldn’t lend you money for. Some are fussy about handing over cash for funding advertising and promotions. Others wouldn’t give you the time of day if you wanted to rebrand your business. However, it is these activities that attract the most attention from your customers and could help to give your business a much-needed boost.
Banks often check out your personal financial history too. If yours is less than good, you might not get a loan. And a refusal for a loan can also end up on your credit history. Unless you have several years of track history that makes you a sure bet for investment, you might struggle to convince your bank to help you out. Of course, there are many areas where your bank might be quite keen to help you.
Anything that is deemed to be an investment could be of interest to a lending bank. You might need to buy a property for your business, like a warehouse or showroom. Some banks are happy to lend for stock interests. Speak to your business banking manager about your options and get a feel for the answer before applying. Don’t forget, a personal loan might be an option too. Consider your choices, and make sure you can afford the repayments.
Crowdfunding websites are very popular these days. They give small startups a place to promote their forthcoming products and services. Best of all, they can source funds from interested individuals. Sometimes these people are happy to donate the money with no expectations. Other times, you might have to offer products or services in return.
This is worth checking out, even if you fail to raise any funds. If nothing else, it can be good PR for your business, brand, or products. It’s always best to check out other funding requests before you post your own. Get a feel for the approach, the tone of voice, the expectations of the funders, and the amount of money you can ask for.
If you have a good suit, a great portfolio, and plenty of charisma, you might be able to charm investors enough to get some funding. Of course, they will expect great things from you. And they might expect a share of your company or profit on the return of their cash. A good presentation will get you far, and the value of that investment could be enormous. How would you find the cash you need to give your business a boost?