Here are some creative business financing ideas that will help you get the money you want.
Savings Account: Here we are talking about your own savings account. Before you dip into your kitty of savings, consider the following: How much savings have you got in that account? Are you dependant on that money for your day to day expenses? How confident are you that your business venture will succeed? Be realistic while you make these considerations. If the savings account is not something you depend upon and you can afford to forget about the money you take from it should you incur a loss, then go ahead and take the money from it. The upside to this is that you are taking an interest free loan from yourself and saving quite a bit of money on that end. You can even repay this loan in variable installments, and not suffer penalties for it.
Family and Friends: This is also a good option for you to acquire funds for your business venture. Depending upon what you discuss with your friends and family members, you can choose the method of repayment and also if you are liable to pay interest. The downside to this is that if you cannot repay the money back in the time that you promised, you stand to lose a good relative or friend.
Partners: Another good manner of generating funding is to take on partners in your business. This is again a matter of choice. And your partner must have the money and the inclination to invest into your business.
Loans: This may not be a very creative idea, but some banks offer very interesting kind of personal and business loans. It is worth a shot to go have a look at these options. You may just strike a gold mine and find the perfect method of financing your business.
Sell the Junk: If you have any unused premises, or unused inventory lying around, or unused trademarks and licensing rights, it is a good idea to sell them to those who need them. This is a good method of recycling your own assets to create finance for your business. The downside is that this option cannot work for a new business venture.
Sell Shares: Selling the shares of your company is a time-honored method of creating finances for your company. If you have a new company, you can do it. You can also do it if you are an old company. You can also sell the shares to your employees. Talk to your CPA and get more details.
Advertise: This sounds silly, but sometimes an advertisement can also generate interested financers for your project. Putting word out there ensures that you generate interest from persons looking for a good investment opportunity. It also gives you a chance to advertise about your company along with it.
By Madhavi Ghare