A Renaissance of sorts is taking over the business world. The gig economy, which according to Forbes is 55 million people strong and represents the new way that people are working today.
More and more people are starting small businesses rather than going with traditional employment. However, the fact remains that even these free-spirited individuals need to fund their businesses. If you have a dream to start up a business, then you’ll want to pay attention to this article. It discusses ways that you can find funding for your business even if angel investors are in short supply.
Something to Consider…
While most business owners would like to hit the ground running, there is something to be said for bootstrapping. Starting your business on a small scale using your own money allows you to see if your idea is even scalable.
If it’s not something that you can easily replicate when it is in the bootstrapping stage, then perhaps, you’ll want to rethink your business plan before you start to look for financing. Otherwise, you might go into debt once you borrow money to get your business off the ground.
1. Try Crowdfunding
According to Investopedia, crowdfunding resources like Kickstarter, Indiegogo and CircleUp have really revolutionized the small business world. This type of alternative online financing provides investors an opportunity to help bankroll and fund your business. So, if you have family friends and others who want to help you with your business, then going with some sort of online crowdfunding site may be the best way to finance your work.
2. Apply for a Credit Card
Inc.com suggests that those who would like to start a business look to the online credit card companies for possible financing. That said, Inc.com does remind business owners that borrowing on a credit card for a business startup that doesn’t exist yet is risky.
This is one of the reasons why it’s very good to start with bootstrapping. If you bootstrap and you know that your business is scalable, then you also know that it is a business that will make money. Having the credit card just allows you to expand faster.
3. Alternative Financing Options
Sometimes even your best efforts to get financing fail. The good news is there are many many alternative financing options available. For example, if you work a traditional job and you have a 401(k), then you can try borrowing from your 401(k) to finance your side gig.
Another way to get financing is to look at short-term lending. You can look at payday loans or auto car loans, for example. Non-traditional lenders like Underhill Car Title Loans regularly loan money to people based on the value of their cars.
These and other alternative lenders give people access to money when they need it without all of the red tape that is required for most normal financing options including bank loans.
Final Thoughts on Financing Your Business
The gig economy has really fueled a boom in entrepreneurship. People who want to start businesses nowadays have more options than ever.
While some of them will get a traditional bank loan or finance the business themselves, others are starting to turn into online resources to finance their new business.
Crowdfunding, bootstrapping, credit cards, and even title loans are just some of the ways that these savvy entrepreneurs have funded their businesses.