Funding Sources 2017 Update
Funding sources are the key to your business start-up. You need the $$$. I wrote this article a couple of years ago and it is timeless. In 2015 I was in an affiliate company and it went belly up. I called it a sinking ship. I raised $10k to join it. I was devastated. I knew I needed a coaching program. I needed a successful mentor who could teach me how to market and close sales. I found the right mentor and coaching program. It was a total investment of $20k.
I did not have $20k but I knew this was my breakthrough. Did I cry, bitch, and moan because I was broke? Yes I did! I was a little bitch. But then I got to work. I wrote the aricle I might as well follow what I preached. It took me 18 months to raise the $20k. This is what I did:
1. Worked Over Time 12 hour shifts 7 days per week
2. I sold everything I could. I asked friends and family could I sell their crap
3. I built up my credit and maxed out my credit cards (only do this if you are committing 3-5 years to building your business).
4. I prayed and had faith that I could raise the $$$.
If you are broke that is temporary and 90% of it is your fault. It’s not an excuse. Those who really want something find a way. Now try these 21.5 Funding sources and stop crying.
Funding Sources 101
Funding your business is simple not easy. True it is easy to get money when you have a traditional business. You will find it hard press to get the banks to give you a loan for your affiliate, network, direct sales, or internet marketing business. If you are a licensed professional like a real estate agent, insurance agent, or certified financial planners good luck on traditional funding sources.
This guide will give you 21.5 ways to funding your home business. Looking to raise between $500-$10,000? Then this is for you. You may want to offer top-tier products and get paid higher commissions. But you don’t have the money to invest in your business to offer top-tier services. I give 21.5 ways to fund your business.
Here are 21.5 Ways to Fund Your Business:
Quick Funding Sources
1. Personal Savings: The simplest way to fund your home business. You are investing your personal savings into a cash flowing business that will give you mega returns. You must think like this to succeed. You are not spending your savings you are investing it.
2. The 3 F’s: Family, Friends, and Fools. It’s tricky borrowing money from family and friends. Especially if you have a history of starting and quitting businesses. If you have borrowed before and failed to pay it back you are up a creek. Then then are fools. There is someone out there who will give you money. I have raised over two hundred thousand dollars from friends, family, and fools.
Be sure to draw up a written agreement saying when you will pay the money back. Offer a high interest rate so the person will not feel like a “Fool” when they are giving you their money.<
3. Credit Cards: Use your credit cards to get started. This is easy when you need less than $300 to start your business and becomes difficult when you want to sell top-tier products that pay higher commissions.
Use your credit cards or someone else. This is where the 3 F’s come in again. I started my company, gave my friend 5% equity, and had her get business credit cards. I then borrowed $5000 for my internet marketing business. It took me 18 months to pay her back but now she gets her car note paid every month plus a nice dividend check at the end of the year.
4. Short Term or Payday Loans: If you have a job you may want to try short-term or pay-day loans. You can borrow up to $2500 with some of these institutions. This is high risk and make sure you are in your home business for the long haul. Their interest rates are atrocious.
5. Personal Lines of Credit: use your personal lines of credit from your bank. I prefer to use credit unions because they are a little more lenient and offer better rates. Plus they have favorable repayment terms.
6. Personal Assets: Borrow against your home, car, or stocks. Borrow enough to start your business and keep it running. Borrowing against your assets will keep you committed to your business.
7. Insurance: Cash out your insurance. This is how many entrepreneurs start. Check your policy’s conditions on you cashing out.
8. Your Retirement Accounts: You can borrow from your 401k plans or IRA’s. Just make sure you borrow enough to cover 3-6 months of business expenses. Most people only borrow enough for the start-up. They forget about marketing and fixed monthly costs.
9. Your Job: This is a slower process and sacrifices have to be made. Need to invest $5000 for your home business? Then save $500 for ten months. Saving a portion of your job income is a smart move because you will not owe anyone and your bills will still be paid. Plus you will have the time t0 learn your business.
Creative Funding Sources
10. Your Customers: Yes, your customers. You can pre-sell items to fund your business. I promoted marketing system before it was even launched. I sold a new blogging platform before it came to the market.
11. Partnered Up: When I started my real estate career I did not have the money for my license, Realtor dues, or investing. I partnered up with agents and sent them my clients. I got a referral fee. I took finders fee on distressed properties. This ides works well in certain niches.
12. Boot Strapping: You only invest the money you make from your business. This may be the only way to raise funds for your business if you have poor credit, no friends, or family who will lend you a dime. You may have to sell small items and upgrade when enough sales come in. The advantage of this is you are learning while you are earning.
13. Sell Your Crap: Yes your crap that stuff you don’t need anymore that is taking up space. I have had several members of my team sell their cars, furniture, clothes, and other items to fund their home business. They used eBay, Craigslist, Back Page, and garage sales.
14. Mobile Advertising: Turn your car into a moving advertisement. Some companies pay up to $300 per week. You are driving anyway might as well get paid.
15. Sell Your Body: No, not like that. Sell advertising space on your body. Options include wearing signboards, t-shirts with company logos, or temporary or permanent tattoos.
16. Windfalls: Use your tax refunds, lotto winnings, settlements, and gifts. You can expand your business every year with your tax refunds.
17. Medical Research: I have a teammate who raised money by participating in medical research projects. This may be extreme but he got his money and has a profitable business. Search online for medical research projects in your area.
Non-Traditional Funding Sources
In my membership site there is a training that teaches you to raise $500 to $10,000 in 30 days or less. Here are the funding source we teach:
18. Crowd Funding: is the collective effort of individuals who network and pool their money, usually via the Internet, to support efforts initiated by other people or organizations. You can use crowd funding resources GoFundMe, Fundagreek, and Fundly.
19. Peer-to-Peer Lending: is the practice of lending money to unrelated people, or “peers”, without going through a traditional financial intermediary such as a bank or other traditional financial institution. This lending takes place online on peer-to-peer lending companies’ websites using various lending platforms and credit checking tools. Sites like Peerform can help you with this process.
20. Investor Loans: Lending Club and Prosper.com connect borrowers and investors. Borrowers get their funding and investors get a nice return on their money. Please check out these sites for more information.
21. Micro Financing: Micro Financing is a form of financial services for entrepreneurs and small businesses lacking access to banking and related services. Mission-driven lending organizations give micro-loans (between $500 and $50,000) to businesses not eligible for traditional bank funding.
21.5 Prayer: When all else fails pray that you will get the divine wisdom to raise the money you need. In fact this should have done this first.
You now have 21.5 funding sources. You can raise money for your home business. Take action on these funding sources and excel in your home business. Article Sources: Ezine Articles
Charles Fitzgerald Butler
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Copyright 2013 Charles Fitzgerald Butler