It’s not enough to have a good business idea. If you really want to launch a business, you need the money to get off the ground and running. And if the burden of debt is too intimidating, you’ll need to self-fund.
5 Ways to Get Cash Without Going Into Debt.
Contrary to what most people believe, there are ways to get cash for your business without going into significant amounts of debt. While it may be easy to fill out an application at your local bank or credit union and get a loan, it’s not always the wisest option. When lean growth is the objective, you may have to get creative.
Here are a variety of options to contemplate:
1. Sell Possessions.
If you’re personally strapped for cash to fund your business with, one of the first things to do is take inventory of your possessions and see if there’s anything you can sell. Some ideas include:
- Sell old electronics you have lying around – such as smartphones, tablets, computers, and TVs. You can sell through a site like eBay, Craigslist, or Facebook Marketplace with very little effort.
- Do you have an old vehicle sitting around that doesn’t work? Rather than let it continue to take up space – or go through the expense of fixing it up – sell it to a junkyard and make money off the scrap metal. Thanks to some changes in the industry, the process is simple.
- Look around your home for items that have value. Do you feel an emotional connection to these items? Do you use them? If you have items that don’t hold any value to you, it may be worth selling them off for quick cash.
Considering that the average household has more than 300,000 items inside, there are most certainly a few things you can do without. Don’t sell things you need, but do get rid of the items that are taking up space.
2. Pick Up an Extra Job.
Can you pick up an extra job on the nights or weekends? You probably don’t want to work more hours, but it may be necessary. Thanks to the gig economy, it’s possible to do things like drive for Uber, rent a room in your home through Airbnb, deliver food, or do some side jobs online. Adding just a couple of hundred dollars per week to your budget may make a big difference.
3. Get a Small Business Grant.
If you’re looking for free money, a small business grant is the closest thing you’ll find. While the loan application process can be rather time-consuming and strenuous in certain situations, it’s hard to beat getting cash with no strings attached (at least in terms of interest rate or equity).
4. Launch a Crowdfunding Campaign.
Are you familiar with crowdfunding? More and more startups and small businesses are using this method to generate cash for their new products and ideas. It involves setting up a campaign on a platform like Kickstarter or Indiegogo and pitching an idea to the website’s users. In return for money, the campaign typically provides its supporters with different perks and products.
5. Pre-Sell Products.
Do you have a prototype or concrete idea for a product you want to launch, but don’t have the funds you need to manufacture it? One clever option is to pre-sell products and use the funds to take care of production. It’s not ideal for every situation, but does make sense when the right circumstances are present.
Get the Cash You Need.
When it comes to launching and growing a business, cash is king. While there are always ample opportunities for small business loans and other financing, there’s something to be said for not giving up equity or saddling yourself with a bunch of debt. Try a few of the methods highlighted in this article and see if you can improve your financial standing and grow your business in a sustainable and cost-effective manner.