Funding a startup in a small business has always been a major primary concern. Irrespective of how good your business plan or the efficiency of your marketing plan is, fund will always remain the epicenter and deciding factor. Getting a loan or grant can be very difficult but what if you are told that there are several businesses you can do on the side to help fund your business? Will you take it?
Some funding options top the list of entrepreneurial considerations
Business funding options such as bank loans, crowdfunding, venture capital, angel investors and relying on family and friends are usually the first funding options that will come to the mind of any entrepreneur when they are looking to fund their startups. It is not good to overlook these options but it is absolutely better to think outside of the box – especially when you do not qualify for some of the options stated above.
Bootstrapping is a very efficient way to fund your business
Bootstrapping can also be referred to as self-funding because it involves the various ways an entrepreneur can use to raise startup fund without being indebted to anyone. In a way, this can be seen as funding your own business without putting an undue pressure on your pocket. To pull off a successful bootstrap, the entrepreneur will have to put on his or her creative cap.
You can use a side business to bootstrap your startup
The good thing about bootstrapping is that you will get funds at your own terms without running your business into monthly debt. Bootstrapping may feel like a stall especially when the money involved for the startup is much. However, any bootstrapping technique you choose will have to be flexible and take up minimal time. Below are side businesses you can use to bootstrap.
This is a market place that will allow you turn your creativity into money. It is easy to setup an Etsy shop and the platform is centered on handcrafted products. Whatever your hobbies are – marketing of jewelries or painting – you can do it on the side on Etsy without affecting your work schedule. You will need to be creative to stand out of the crowd.
Freelance writing is a work from home business that writers can engage in to fund their businesses. The only material you will probably need is a computer and an internet connection. The working hours are flexible.
3. Day job
It is not a surprise that many entrepreneurs are hesitant to quit their day jobs. Taking up a full or part time day job combined with other business – such as freelancing – can offer you the much needed financial freedom for your startup.
4. Entering contests
Contests can be rewarding with little or nothing to be lost when you try. If you are very good at poker, why not give it a try. Millions of writing contest shooting up every day with varying prizes which writers can try their hands.
Blogging is very easy to start but learning how to monetize it is a little tricky. The beauty of blogging is that it can be done from anywhere with little or no time constraints. Focusing on a particular topic on your blog will make you stand out.
6. Driving for Uber
All you will need to become a Uber driver is a car and a smartphone. The app allows drivers to use their own vehicles and set their schedules which make the job a lot easier. This app is getting popular in modern times and has become a good source of side business that can bootstrap your mainstream business.
- Getting a bank loan for a startup business is always difficult.
- Bank loan, crowd funding and family and friends are the top financing options on the list of many entrepreneurs.
- Bootstrapping will save your business from monthly debt.
- Creativity is very important for bootstrapping.
- Bootstrapping is a self-funding technique.
- Bootstrapping may be frustrating if financial requirement is high.
- Etsy is a marketplace for sale of handcrafted products.
- Writers can work as freelance writers to raise funds.
- You can work as a driver with Uber.
- Entering contests can be an efficient way to raise money.
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