So, you didn’t wake up a billionaire either? I had big plans for all that Powerball money; most of my new money plans included me drinking an unlimited supply of icy adult beverages on a private beach all alone, but I digress.
Maybe you had grander, more useful plans for your winnings like opening a new or an additional small business. Just because you didn’t win a piece of the record breaking $1.6 billion jackpot doesn’t mean you have to give up your dream of finally opening your own bakery that only sells cupcakes that look like other foods (very niche – I like it!).
Now is a great time to open a business. Not only are 50 percent of small business owners claiming current business conditions as excellent or good, but 70 percent of owners feel their business is successful.
It can take a lot of time and effort to gather all the funding you need to launch a business while also setting it up for success. There are a crazy amount of hurdles with a nice side of setbacks. However, there are a slough of options for getting your business off the ground.
With a little patience and some help from those closest to you, that new business will be within reach before you know it — Powerball be damned! Here are five cool ways to fund your new business
Get a Side Hustle
If you’ve never heard the term, a side hustle is just a way to make additional money. I have a side hustle of my own; I take family portraits in order to fund my photo gear addiction or go on a vacation with girlfriends. If you have a usable skill that people will pay money for, take advantage of it and get to work. Sell aluminum from old windows. Become a wedding singer. Whatever it is, a side hustle can be a lucrative way to build up capital for your new venture.
Go with Crowdfunding
Crowdfunding allows you to accept funding for your business or project. Instead of hunting for investors, you can create a campaign and promote the heck out of it to drive up donations. Many users include incentives that reflect the amount of a donation in order to show appreciation, as well as ramp up donations. How do you get started? There are several crowdfunding sites, but they aren’t all created equal. Do your homework to find out which one is best for your and your small business.
Fundable focuses on small businesses, and Kickstarter is always a solid option.
A Line of Credit
If you’re looking to get your business going rather quickly and have really good credit, bootstrapping your new venture with a line of credit could be the way to go. Isn’t a line of credit the same as a loan? Not quite. A line of credit has more flexibility, can be used multiple times and can be paid down at any time. While loans are typically used to borrow larger amounts, a line of credit is mostly used for daily business expenses.
Apply for a Grant
Did you think grants were only for college students, artists or researchers? Good news: there are grants for small business owners, too! The National Association for the Self-Employed (NASE) offers up to $4,000 to grow or launch your business. They also offer college scholarships for the dependents of small business owners. Pretty handy.
Ask Your Mom
Maybe it’s not the coolest option, but your parents, other family members and friends can be a great resource for launching your own business. They are likely to lend you the money because they believe in you and want to see you succeed. Just be prepared: borrowing money from your loved ones can have some pretty serious consequences.
There’s no one way to fund a new business — and there are even more creative options out there. Do some legwork to find out which method is best for you. After all, the world is ready for those cupcakes that look like other foods.
We want to hear from you! How did you fund your small business in the beginning? Let us know in the comments!