How Can I Raise Capital for My Business Without a Bank Loan?
If you are an entrepreneur who is trying to figure out new ways to raise capital, you’ve learned how competitive this process is. Read on to find out different and creative ways to raise your business more money without ending up in serious debt.
7 Core Principles to Raise Capital at Any Stage
“Know Your Market. Really. It seems super obvious and simple that you must ‘know your market’. But yet I watch dozens of entrepreneurs pitch their idea and not have the slightest idea who their customer really is or what market they’re playing in. You have to nail this part to stand any chance of raising funds.” Says Clate Mask, Founder of Infusionsoft. See the full story here.
VC Funding for Your Startup
“You Have to Decide: High Impact or Small Business Entrepreneur? You have to know going in what you really want; because you can’t have it both ways. If you go into high impact venture-backed entrepreneurship; you’re trying to build a business that’s going to scale and make people wealthy. And you’re not going to be your own boss for long. Whereas a small business entrepreneur wants salary security and to be their own boss. So you really need to ask yourself which world you’re trying to be in. Are you trying to be a business owner who’s well respected in the community; has a nice income and runs his own shop or are you trying to create the next Microsoft or Twitter? You have to choose.” Eleven more tips can be found here.
Alternative Ways to Raise Cash Fast for Your Business
“Crowdfunding. The focus is on raising money from regular citizens to fund startup projects or new products—an attractive option when you need expansion cash. In exchange for the investment, investors may be the first to receive the product or they receive something else from you. It can work for anyone in anyone industry.” Learn more.
Clever Ways to Raise Money Without Making an Investor Pitch
“Pursue non-dilutive capital. Grants, solicitations, and RFPs may not be a fit for every company, but make sure it’s not “yes” before you say “no.” Some industries, such as biotech, are especially conducive to federal grants. And don’t forget to look in your own backyard. More and more cities, regions and states have grant programs or loans for high growth businesses at low-interest rates.” Four more ways can be found here.
Options Beyond Bank Loans for Financing Your Startup
“Product pre-sales. Selling your products before they launch is an often-overlooked and highly effective way to raise the money needed for financing your business. Entrepreneur Priska Diaz was able to raise $50,000 for her company Bittylab with a pre-sale of her Bare air-free baby bottles. The money Diaz was able to raise helped her pay for inventory, and also helped to open some doors in retail and learn about her website’s visitors. Though Diaz was able to benefit greatly from this means of financing, there were still some difficulties to overcome.” Keep reading.
Enter a Contest
“Believe it or not, there are organizations out there that offer monetary rewards—or even financing—for businesses and entrepreneurs who enter their contests. Eligibility requirements, entry fees and judging criteria vary widely. But if you have confidence in your idea and your pitch, this might be the way to get some cash.” See more ideas here.
Growthink’s “Definitive Guide to Creative & Alternative Financing Sources”
“The mistake that most new and early stage companies make is that they go after highly competitive sources of funding. Yes, getting venture capital or bank loans IS possible. But it’s like driving on an extremely crowded highway. That is, you are competing against all the other cars (businesses). At any given moment, there are SO many companies competing for funding sources like venture capital and bank loans, that you have to spend countless hours fighting through all the clutter in order to be heard, let alone receive a financing check.” See more.
You can buy this guide today and get started on your journey to raising more capital!
Do you have any ideas or past experience with creative capital raising? If so, tell us in the comments below!