If you are starting a new business or are looking for ways to keep your small business afloat, you have more options than you may think. Grants for small businesses are available to help pay workers, build factories or fulfill orders for new clients. In addition to these grants, there may be several other options that you will want to look into.
Crowdfunding Could Help Your Small Business Obtain Capital
If you have a product or service that your customers love, ask them to pay for it ahead of time. For instance, it may be possible to get your loyal followers to order your latest video game or newest item in your fall clothing line before you start to make it. Essentially, you are asking for the money before you make the product, and the goal is to use the buzz that has been created to sell additional copies. This will hopefully help you cover costs and turn a profit.
Sell a Portion of Your Company to an Investor
Another idea to get quick cash may be to sell a portion of your company to an investor or group of investors. While your ownership stake will be diluted, it may be a great way to get the capital you need without having to get a loan or otherwise worry about paying someone back in the event that the business isn’t as successful as you hoped. Investors may also be willing to provide their knowledge and connections, which could make it easier for your business to truly grow and thrive.
Get a Personal Line of Credit
You may want to consider getting a personal loan or line of credit to help fund your company. Secured loans may come at interest rates as low as 4 percent while a credit card may come with perks that may help you pay for plane tickets or other costs of doing business in addition to the capital provided. While you are on the hook for paying this loan back whether your business succeeds or fails, it is the easiest and fastest way to get access to credit if your company doesn’t have a track record yet.
Use Your Own Savings
Your personal savings could be a quick and easy source of capital to start and operate your new business with. Those with a 401k that permits loans could borrow up to $50,000 at low interest rates and no credit checks needed to get the money.
Starting a business may make it possible to help your community while also gaining more control over your career path. However, it won’t be possible to operate without cash. Therefore, it will likely be necessary to obtain a loan or look into grants for small businesses to keep your company liquid.