Whether you’re in the beginning stages of starting your new business or your current business needs a little extra cash to start a new project, gaining extra money quickly is something every business will go through at some point or another. Luckily, there are a couple different ways to do just that!
Here are three very effective ways to go about earning money for your business:
Have a solid business plan.
The best way to gain third-party investors is to have a great business plan all set and ready to go. Not only are they great for showing potential investors how worthwhile investing in your company is, they help to keep you on track and focused for years to come.
Along with your business’s long-term goals, short-term goals, and plan of action, you should set aside an area in your business plan especially dedicated for investor eyes- something they can read and then easily understand the benefits of investing in your business. Even if you’re an already established business, having a business plan you update as you go with new goals and investor rewards is something valuable to have on deck.
Crowdfunding has recently gained popularity in being a viable method for raising money for businesses. Though typically popular for artistic projects, it can also be used for raising money for the average small business.
The tricky thing about crowd funding is that it’s not black and white. Your investors get to pick how much they donate, though a lot of businesses utilize a rewards system to sway investors towards donating greater amounts of money. Additionally, you need to make sure your crowd funding is legal. Because it is still such a new way to raise money, the legal lines can sometimes blur. Crowdfunding can be a great, successful method for gaining investment, but be sure to do your homework and make sure everything is abiding by legal guidelines before you dive in head first and put all of your business’s eggs in the crowdfunding basket.
I think one of the most innovative ways to get funding for a business is actually the tried and true bank loan method. When you loan with a bank, you often get low interest rates and you can bet that your backer is solid. Additionally, you don’t have investors owning any portion of your business, if that’s something you want to avoid. You do have to have a bit more of a proven history, but that will come up time and time again when owning a business, so it’s better to face that early on.
Bank loans can also be great because friends, family, and other third party investors often want a return on their investment other than simple interest. This can cloud ownership and decision-making. A pure loan is often a lot simpler, very reliable, and less confusing.
Deborah Sweeney is the CEO of MyCorporation.com. MyCorporation is a leader in online legal filing services for entrepreneurs and businesses, providing start-up bundles that include corporation and LLC formation, registered agent, DBA, and trademark & copyright filing services. MyCorporation does all the work, making the business formation and maintenance quick and painless, so business owners can focus on what they do best. Follow her on Google+ and on Twitter @mycorporation.