A BBC report from 2012 says that startups now need very little cash to get underway. But for digital entrepreneurs who do not have access to cash in any form, getting creative is the order of the day, whether this involves holding a yard sale, talking to angel investors, crowdfunding, applying for government loans or getting a personal loan. With nearly 660,000 businesses established in the UK in 2016, it is safe to say that starting any type of business has now become easier, but for entrepreneurs who have tried getting funding in the idea stage and failed, it can still be easier said than done. There is hope, though, because the ideas above can open doors to digital businesses.
Government Loans and Personal Loans
A report by the Financial Times in 2017 attributes the establishment of new businesses to government-sponsored initiatives such as Brighton Fuse, a programme that creates entrepreneurial opportunities for graduates. However, entrepreneurs who already have a concrete business idea or those who have started building a business from the ground up are encouraged to take a look at applicable government loans.
The UK government offers loans to businesses who have been operating for less than 2 years. A personal loan is another funding opportunity worth exploring. To get a personal loan, entrepreneurs should determine the capital they need. If the loan is unsecured, entrepreneurs will, of course, need to take their credit score into consideration before applying for a loan. Personal loans are available in traditional financing institutions such as banks, but those who have low credit scores can always take a look at reputable lenders online.
The Benefits of Crowdfunding
Entrepreneurs who have a bright idea can always go to crowdfunding sites and start their own crowdfunding campaign. While it is tricky to get funding for free, it is still possible for new digital businesses to raise a bit of cash from the activity, even if they know that they are not likely going to get all the funding they need.
Crowdfunding can be competitive, but this can help business owners get their message out there and the campaign itself can also inspire them to put together a business profile that they can use later on. Crowdfunding is one of the fastest ways to raise funds that also doubles as a marketing campaign. It is also an avenue where entrepreneurs can test the market and a good alternative for those who struggle to get traditional financing.
Talking to Angel Investors
When businesses want to talk to angel investors, the first hurdle is to find them. Thankfully, sites like Lusha and Angelist exist. If the pitch is ready and all pertinent information have been supplied in one succinct email, entrepreneurs are encouraged to contact angel investors directly. However, John Sechrest, a founder of the Seattle Angel Conference notes that businesses need to build their business first before asking for funding. After all, angel investors are not only there to help, they also want to invest in startups that will make their money grow.
Holding a Yard Sale
If a business does not need a lot of cash, holding a yard sale is a good idea. In fact, it is one of the easiest ways to raise funds for just about anything. Entrepreneurs who have accumulated a lot of stuff they no longer use can sell these items to raise a bit of money. According to Forbes, business owners who do not owe any money to investors have more freedom than those who do. This means that raising money from old items that have been sitting in storage for a while is a wonderful idea businesswise. To raise more money, friends and relatives can donate items to the yard sale as well.
Raising money can be difficult but founders of businesses shouldn’t lose hope. In fact, entrepreneurs who are willing to put in some work to raise funds for their digital startup can get the funding they need in no time.