It is not really a secret that behind every successful business lays a great idea, but it is also well know that every idea is worthy as long as it can be implemented in reality and that is where majority of problems occur. History of entrepreneurship is filled with examples of revolutionary ideas being wasted just because there wasn’t enough seed capital to make dreams possible. Searching for a solution in some of the banks is what comes on everyone’s mind, but be aware that getting a loan can be very hard and some people just don’t want to deal with such matters. Fortunately, there are other more out-of the-box ways of raising capital and here are 5 of them.
Apply to an Angel Group
There are numerous ways to get in contact with someone who will be ready to provide capital for your ambitious start-up, usually in exchange to ownership equity or convertible debt. Some of the angel websites will present your case to potential investors on your behalf, others will demand more direct approach and more personal communication with angles, but whatever the case may be, watch out for groups that require you to pay something in order to apply, because this is not a common practice and is considered predatory.
Ensuring funding through online kickstarter campaigns is becoming increasingly popular solution for the lack of seed capital and we will continue to see various examples how they can be conducted successfully, with gaming industry as one of the business branches which benefited the most from this method of fundraising (Ouyais one of the most notable examples). Websites like Kickstarter and Indiegogo have proven to be very successful online platformsthat brought to life more that 200.000 projectsso it wouldn’t be unwise to create kickstarter strategy and try your luck.
Investing in Penny Stocks
Some of the people consider penny stocks to be not that great of an investment, but we beg to differ. Spending your money on some company’s penny stocks before it becomes more profitable is in most cases the best way to invest, because there is a lot more money to be made than it would be ever possible with blue-chip stocks, and it is much more sensible approach for individuals or organizations who are not entering stock market with too much resources. Looking for penny stock tips is not bad idea either, if you want to get stronger foothold from the start.
Sell Your Product or Service
Limited resources don’t necessarily mean that you can’t start operating on smaller level just to get things moving. You will be forced to invest some money in initial supplies, but as long as you keep things on level that is small enough you will reduce risk involved into equation. Just bear in mind that, at this point, amount of effort you will invest in successful branding can make or break your business, so don’t be too scrimpy while dealing with this question.
Resell Others’ Products
If you think that spearheading your business into market with limited line-up of initial products is too risky for you, there is also an option to earn money with reselling. This is more money-demanding route, but it is also a safer one and it is not that uncommon to develop successful business based entirely on reselling. Itcan be conducted two ways – through online drop shipping or through persistent presence on garage sales, flea markets and in antique stores.
So, what is there left to say than, where is a will, there is a way. Banks don’t have to be your first and last search point in a quest for seed capital and money can be obtained in various places as long as you are hard working and tenacious enough. If you are, on the other side, lacking those important qualities, even all the money you can obtain just won’t be enough.
Nate M. Vickery is business consultant and entrepreneur from Sydney, Australia.Aside from work he enjoys spending time with his fiancée and watching cricket.