Creative Ways to Finance Your Business

Many entrepreneurs have had to become decidedly creative in order to make their business dream a reality.

Photo: Ken Teegardin/Flickr

Photo: Ken Teegardin/Flickr

When you want to get your business off the ground, the traditional routes do not always provide you with the financing you need. Many entrepreneurs have had to become decidedly creative in order to make their business dream a reality.

Some entrepreneurs lacks the finances when starting their business because “most startups require at least a small amount of seed money to get off the ground, and you may not necessarily have those funds ready to go when you want to launch.”

If you want to launch a business, consider the following tips, reports Business News Daily. They may help you finance your business endeavor.

Presales

Many entrepreneurs find that presales of their products can substantially help them pay for inventory with some funds left over for marketing or further website development.

You can make pre-sales via the internet (i.e. social media networks) or by setting up temporary store-fronts at malls or even farmers’ markets.

Be clear with your customers about when they can expect their merchandise and provide them with a contract or receipt for the transaction.

Sell Assets

Many entrepreneurs find they have assets that can help support their business initiatives. Contacting an auction firm is a great way to obtain expert advice and great prices for your unwanted assets. When you decide to go the auction route it is also important to conduct research and make sure the asset auction firm has a verifiable track record of past and recent sales of similar assets.

“Generic references from non-related industries should not complete your vendor selection due diligence,” according to Heritage Global Partners. These items can provide the seed money you need to get your business off the ground. Whether it’s real estate, a vehicle, or even unneeded business equipment, you can sell your assets at auction to achieve a great price that will help fund your needs.

Credit Cards

While using credit cards to obtain your business needs may not be ideal, it is an option. When you can’t get a business loan from a bank and you don’t have family you can borrow from (seldom a very good option in any case), you can always rely on your credit to get your business off the ground. Do your best to avoid racking up too much debt, however, as it can become an obstacle for your business as it grows.

Other options for creatively funding your business include credit card balance transfers, crowdfunding, or contacting strategic investors. Although credit card balance transfers are a great idea to consolidate your finances, there might be fees that you need to pay for transferring a balance to another.

In addition, make a plan that focuses on your essential business needs. You may be able to use a few of these tips to fund your business plan. You might also talk to other entrepreneurs to see how they funded their business launch too.

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