Everyone comes up with a million-dollar idea at least once in their lifetime, the only difference is that some people cash in on it, while others fail to do so. It is a common misconception that this only has to do with a power of will and the fact that some people will follow up on their plans while others won’t. However, the greatest problem that one faces are often finances. No matter how frugal the idea, it might still be more than you can afford. Luckily, in 2017 there are more than a few ways to fund your startup. Here are some ideas on how to turn your dream into reality and become the head of a promising new enterprise.
1. Getting a loan
The most obvious first choice in funding your startup lies in getting a loan. For this, you first need to decide whether you should go with a business or a private loan, and then make a good choice of a lender. Credit unions and banks are the most common choice, but there are also some alternative lenders you should definitely consider. Here, the length of the tenure, no matter whether you have a collateral or not, as well as your credit rating will play a huge part in what kind of a deal you’ll get. While the first two might be, more or less, situational, the last one is definitely up to you. Fiscally responsible behavior in the past can ensure that your credit rating is immaculate. If not, you can always look for companies such as Clean Credit, which specialize in repairing your credit history.
2. Start a crowdfunding project
Another thing you can try is starting a crowdfunding project on the Internet. There are numerous platforms out there, such as Kickstarter, which allow you to present your idea to the wide masses and inspire those who believe in your idea to invest in your business. Even though this may sound quite simple, it is actually much more difficult than it seems. It all depends on the way in you present your dream to the world. This is exactly the reason why some legit business ideas fail, while one guy managed to gather over $55,000 to make a potato salad through the above-mentioned platform.
3. Sell an asset
People who have a valuable asset may consider selling it before trying anything else. For example, you could sell your place and move into a smaller one, sell a car or even some valuable jewelry that you own. Sure, some people may dislike this idea, but it is undeniable that it has some overwhelmingly positive sides. For instance, if your business hits off, you will be able to buy the same car model again, while it is highly unlikely that your car alone will finance the launch of your business (unless you become a part-time Uber driver or something similar).
4. Get a partner
Finally, if you doubt that you will be able to get enough money on your own, you might want to consider teaming up with someone who believes in your vision. Unfortunately, this idea has several drawbacks. The most important one is the fact that a person sharing a common interest with you doesn’t necessarily share the same vision. This can become a problem if the two of you decide to start pulling your company in opposite directions. This is why the choice of the right business partner requires some careful consideration.
As you can see, turning your dream into reality is definitely not an easy thing, but with proper organization, it is definitely possible. For this, however, you need to make a proper estimation of exactly how much money you will need and then consider the best way to procure these funds. Each of the above-mentioned four methods has its advantages and drawbacks, so it is up to you to decide which of them are the most suitable for your business. This will be just one in the series of difficult decisions you will be forced to make on your road to success.
Byron Simpson is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance cent.