Ways to Generate Cash to Start up a Business
Have you ever dreamed of being your own boss? Ever had a great business idea that you haven’t yet put into action? It can be difficult starting up a business – especially if you have no capital or little investment. Below we have listed some innovative ways for you to get that cash injection you may need to get things going.
Use your Personal Savings
You may have a personal savings account with a nest egg, that you have been keeping for a rainy day. There’s no better way to use it than investing in something that could in turn result in creating much more money. You don’t need to empty your entire savings account but putting a little something towards a brand-new adventure could be worthwhile and means that you don’t need to look elsewhere.
Get an Interest Free Credit Card
If savings aren’t an option – or you are still short of your goal amount – you can get some great interest free credit cards that can give you the money you need for funding costs. There are lots of them around which means you can delay payments on them. You will also find that once the period of 0% interest is over, there will be other suppliers that can offer you free balance transfers.
Borrow Against your House
If you own your own home, borrowing against that is always an option – and will give you a nice lump sum to use on your new business. There are a couple of ways in which you can do this. You can take out a secured loan – where the loan will be secured against your property value, or you can get an advance. This means that you will get additional borrowing from your mortgage lender. The only thing with this is that the rates are likely to be different than they would be for your main mortgage. You do need to make sure that you pay this money back in full and on time.
Small Business Loans and Grants
You can apply for a start-up loan for your business via the Government. There are lots of different grants and loan schemes available – some of which specific to your individual area. You need to have a clear business plan before you go ahead and apply for these, and they do tend to have specific criteria to meet.
Cash in on your Vehicles
If you have good public transport links, or your car costs seem to be getting higher due to repairs or fuel costs – it might be a good idea to use a reputable car scrapping scheme. The online functionality of these types of schemes these days means you don’t need to spend lots of time negotiating with scrapyards – you can simply enter in your cars details and location to get your quote. This can give you a nice healthy sum to kick your business off.
Seek Investment
Angel investors exist in real life, not just on Dragons Den. If you can’t get enough money from your own assets or the bank, this could be an option for you. There are lots of successful entrepreneurs out there who are looking to invest in new projects. Usually they have a particular specialty that they like to invest in, so do your research to see where you would fit in. The added benefit of using an angel investor – is not only could they offer you the finances you need to get your business started, they can also give you some invaluable advice and guidance along the way. In order to achieve angel investment – you need to make sure that you have fully thought through your business plan and have clear financial objectives, so they can have a clear idea of what their return on investment would be.
Crowdfunding
Crowdfunding has become an increasingly popular way of funding business projects in the last few years. There are some great crowdfunding sites such as Kickstarter where you can post an online appeal for money for your project. All crowdfunding platforms operate in different ways – so it’s always best to read the small print. For example, on some of them – they may hold any cash that has been collected until the full amount has been met. If you don’t manage to raise enough, it could get sent back to the people who have donated it.
If you are looking to start up your own business, but don’t quite know where you are going to get the cash yet – hopefully our hints and tips has put you in the right direction.
