Starting a business is a lot of work. You need to develop a product or service, market it, create a website, find a location, hire employees, and a lot more. The hope is that all of this work will one day pay off, and you’ll be the owner of a successful business.
However, before you can get there, you need to have some money to start this business. Starting a business isn’t cheap and most of us don’t have that sort of money lying around. If you’re trying to start a business, you may find that you need some extra funds to truly get it going. To do this, there are four great ways that you can start bringing in some extra funds.
Get a Second Job
One of the first things you can do is get a second job. For many, their full time job is just enough to pay for their own lifestyle. There aren’t a lot of funds left over for extra activities, let alone starting a business. If this sounds like you, you may need to take on a second job in order to bring in enough cash.
Luckily, there are plenty of jobs that you can get that will work around your existing full-time schedule. For example, you could get a bartending job on nights or weekends. Or, you could sign up with a company like Lyft or Uber and make some money driving people around in your spare time. It will all depend on where your skills lie and what sort of hours you have available.
Of course, if you’re working a full-time job, and then a second part-time job, this probably won’t leave you with much time to work on your business. Consider working the part-time job for a few months, saving up every bit that you can, and then devoting more of your time to the business.
Get a Loan
A common method many use for funding their business is to secure a loan. The great thing about a loan is that it gives you all of the funds that you need now, and you can pay it back over time. However, loans also come with some risk. If your business fails, you could find yourself paying back a loan for years to come that you can’t afford. On top of this, securing a loan isn’t always easy. You’ll need to have a solid business plan in place along with a good financial record.
To get a loan, first talk to your bank. Banks provide thousands of small business loans each year, and they’ll have someone on hand who can assist you with the paperwork. If you don’t belong to a bank, or if your bank declines your application, talk to a local credit union. Credit unions are owned by the members and might be more likely to accept a loan application for a local business.
Your third option is to talk to your friends or family. Many of us have family or friends who would be happy to assist us financially in order to help us achieve a goal. However, borrowing from people you’re close to is risky. It’s never a good idea to mix business with your relationships, as it can make things uncomfortable down the line. Make sure you are very close with the people you’re asking, and that you pay back the loan as soon as you can.
Look for Investors
The next option is to get an investor. Investors provide money to start a business, but in exchange they own a portion of the company. Investors can provide a great cash influx in order to help you grow a business further, but you’ll have to be willing to give up some of your company. There’s a lot to know about finding good investors and how the system works – more than we can cover here. For more on finding investors you can check out this guide.
Sell Things You Don’t Need
Finally, think about selling some things that you no longer need. To start your business, you’ll likely need to scale back on your current lifestyle a bit. Now is a great time to remove the clutter from your home and to bring in some extra cash at the same time.
Go around your home and look for things you don’t need or use anymore. Exercise equipment, old computers, video games, clothes and more can all be sold for some extra cash. You can even look into “cash for junk cars near me” if you want to get rid of that old car you have sitting in your driveway. Once you have a successful business up and running you’ll be happy you chose that over your old stuff.
Explore Your Options
There are plenty of ways to bring in more funds to start your business. You just need to explore all of your options, weigh the pros and cons of each, and then decide which one is right for you. If you take your time with the decision, and consider all of the angles, you should end up choosing the right path, and starting your business on the right foot.