According to MBA in Finance, the average entrepreneur needs $70,000 to finance their start up. This may be for their product development, purchasing inventory, or paying employees. It is not uncommon for entrepreneurs to immediately head to the bank for a business loan however; there are plenty of non-bank financing options available. It may not be easy to see the alternatives to bank loans at first but creative entrepreneurs can be successful. In this article today, I am going to discuss innovative ways to fund your start up.
Let Suppliers & Customers Sponsor You
Suppliers and customers can help your startup become a success in many ways. If you agree to pay the suppliers back at an agreed upon date and they see potential in you they may allow you to hold the inventory that you need. Customers, on the other hand, may help you fund your startup if you offer them incentives such as discounted prices or customization.
Crowdfunding websites such as, Kickstarter, have been increasing in popularity and success over the years. When taking this innovative route you do not have to worry about repaying the money. Instead, a large group of people will each invest a small amount out of the kindness of their heart. However, if you want your Crowdfunding campaign to be successful you are going to have to know how to use your words to show potential contributors why they should invest in your startup and not your competitors.
Ask Family & Friends
Your family and friends are the first to hear about your startup and they are one of the first to turn to with helping getting your venture off the ground. They know your qualities and if you are dependable and driven in their eyes, they may be willing to loan you some money until you get things up and running. To avoid breaking up good relationships, however, it is important to make sure that you pay them back as agreed.
Monetize a Website
If you are an entrepreneur, you can earn money with another venture while trying to get the money to start your ideal startup. The best part is the skills that you learn when monetizing a website to fund your startup is going to benefit you once you get your main venture started. Various ways to earn money through a website include online ad revenue, consulting, and subscription. If you are really determined to make your startup a success from the beginning you will make sure that the website you create for funding purposes is in line with your startup niche to help with branding.
Sell Your Skills on Gig Sites
Gig sites such as Fiverr have become increasingly popular over the past few years. People have been able to sell their various skills, regardless of how bizarre they are, and earn enough money to finance their goals and dreams. The key to making money on these gig sites is finding something that you are good at that does not take much time yet at the same time is unique from what other users are providing.
There are tons of innovative ways for you to fund your startup. You just have to dig deep into your creative side and see what your mind can come up with. Did I miss anything? Feel free to comment and tell me some of your innovative startup ideas.