Let’s face it. You simply can’t start a home business if you don’t have the money to start it up. Sure, there are certain businesses that can be launched without the need of capital, but that pretty much restricts your options. Thankfully, it is fairly easy to fund a home business.
We have chalked out 5 major ways in which you can fund your home business, whether it’s part time or full time, large scale or small scale. Some of these amazing options are as follows:
Crowdfunding utilizes one of the best technological advancements man could ever have made –the internet. What you do is that you simply list your home business ideas on sites like IndieGoGo, GoFundMe, GiveABuck etc and ask people to invest in it. Here are some of the reasons why this is such a good idea:
- It gives you access to potentially millions of users because of the wide scope of the internet.
- You can choose which website you want to put your idea onto. You can simply search on a web engine and many options will come up.
- You don’t have to pay back your investors in terms of money or equity. You can pay them back with bonuses or perks. Say for example, your idea of a home business is to make and sell beauty products.
- You could pay back your investors by giving them the contact details of your clients. So if those investors were interesting in the same business, they would have access to clients too, and that would be a big bonus to them.
Almost everyone would agree that this is a conventional or traditional way to fund a home business. But hey, it’s tried and tested, and it’s fool proof. You can loan a principal amount of money against a certain percentage of interest that you would be liable to day according to the terms and conditions of the contract. It could be monthly, quarterly, semiannually, or even yearly. You have to pay back the principal amount of money at the end of the term. One thing that you should make sure is to go to a bank which provides you with the set of terms and conditions that you like.
Business plan competitions:
Business plan competitions are all the rage right now because they allow investors, such as people in the corporate social responsibility sector of big companies, to meet people who have great and practical business venture ideas. These investors often come to universities and hold competitions, asking students to pitch in their best ideas, demonstrate how they can be workable, and then reward the winners by giving them the means to making their ideas materialize.
These are public-private partnerships, which reward you by offering perks like clerical assistance, work space etc.
This means you get incubated by a larger company. So if your idea is worth it, you will easily be able to find someone who is willing to fund a home business.
These options will have you up and running your business in no time!