About 90 percent of failed startups met their doom because they tried to scale up too early without the capital to back it up. If you’re thinking about starting a manufacturing company or any other sort of business, this is a crucial fact to keep in mind.
Why? Because it shows you the best way to start a business: to focus on your financing.
Of course, this wouldn’t be a problem if you took out a loan. Many entrepreneurs don’t have great enough credit to be approved, though. Some prefer saving up for a business instead to minimize risk.
Before making an Instagram page for your brand, you need to learn how to raise money for a business without a loan.
How to Raise Money for a Business without a Loan
Many banks deny entrepreneurs small business loans because they have no established business credit. But how are you supposed to establish business credit if you don’t have the capital to start in the first place?
That’s where you need to get creative.
The Power of Networking
There’s always a great networking event on the horizon. There’s also an unlimited number of new TV shows for you to stream from the couch at home.
The choice you make between the two on any given night might just determine the success of your business.
Networking is the key to finding and meeting angel investors. These are investors whose names don’t get attached to your project. They invest because they believe in you.
How can they believe in you if they haven’t met you yet? Get out there and shake some hands.
Keep Overhead Low
Ever heard of Amazon? Microsoft? Disney?
They’re a few of the biggest companies in the world. And they’ve all got one thing in common: they were all started in a garage.
You’d do well to remember their humble beginnings and emulate them in your own business. Keep startup expenses down by finding an inexpensive option for packaging, like PN Products. And don’t spring for a brick and mortar storefront until you’re well-established!
Crowdfunding Isn’t Dead
While crowdfunding websites like Kickstarter and GoFundMe aren’t as buzzy as they were a few years ago, they’re still great options for funding your startup. This is especially true if your business idea helps solve a common problem or touches the heartstrings of your community.
Crowdfunding sometimes seems too good to be true, doesn’t it? In a way, it is – the money doesn’t simply appear out of nowhere. You need to show up on the other end in order to make your crowdfunding campaign successful.
Here are a few tips for a winning crowdfunding campaign:
Keep your campaign active by updating followers frequently on your progress. People love being a part of a community; create that for them.
Add a video. Campaigns with videos raise 105 percent more capital than campaigns without them. Make sure you get your face in there too.
Keep your time period short to create a feeling of urgency in your audience. The most successful campaigns are only active for a month or so.
If you follow these tips, you’ll have your startup money in no time!
Your Financing Options
Now that you’ve read up on how to raise money for a business without a loan, you’ve got tons of new resources for getting ahold of the capital you need to follow your dreams.
Still want to work on your credit to go for the loan? Check out our articles on credit to learn more about how to do that!