Even while there are many ways to fund your new business, many of them are either expensive, call for security (such as personal assets), or entail the involvement and expectations of other people (as in the case of friends and family loans, funding from angel investors or venture capital financing). Here are five wise methods for financing your solopreneur startup if you wish to fund your own business ventures.
Make a savings deposit-
Opening a savings account is a terrific method to get your business off the ground. The proverb “cash is king” is one that we have all heard. Use your savings account as a holding place for all the money intended to launch your enterprise if you have previously set aside money to do so.
You may need to set aside money for legal charges (such as trademark filings), developing your web presence, and any product costs depending on the type of business you are running. Always keep separate savings account for unforeseen personal expenses. Never spend your entire savings only to launch a business.
Grant programmes and government loan programmes-
Government grants are one of the best funding choices if your business idea is in line with government initiatives. It is a nonprofit fund that is provided to entrepreneurs with no expectation of repayment or interest. There are government loan programmes and efforts as well, such as SMEs and MSMEs, that give new businesses technical assistance, funding, training, subsidies, and other essential services. These credit programmes are intended to support rural India’s socioeconomic development, particularly in the areas of SC/ST, women’s entrepreneurship, agriculture, clean technology, small-scale industries, etc. Among the lending programmes are MUDRA, Start-up India, Make in India, and others.
Own your own credit card with a 0% interest rate-
Credit cards are a third option for financing your business. Apply for a credit card that has a high credit limit, 12–18 months of 0% APR interest, and at least 2% cash-back incentives if you must use a credit card to finance your business. As a result, you will be able to start investing in your firm right away and have at least a year to increase your sales and profits. However, you must ensure that you can settle the loan in full before the interest rate applies (after 12 to 18 months).
Start a Fundraising-
Launching a Fundraising campaign is the ultimate approach to raising money for your startup company. Using this website for crowdfunding, business owners can raise money from existing and new clients. Additionally, it’s a fantastic way to raise brand awareness, increase online visibility, and get honest customer input on the viability of company ideas.
Utilizing your social media networks to promote your Kickstarter campaign is the best approach to getting investors for your company. Additionally, it promotes brand interaction and community building, which strengthens client loyalty.
Funding from friends and family and personal resources-
Bootstrapping is the term used to describe starting a business with cash from personal savings or loans from friends and family. Entrepreneurs who have their own capital can make all choices and keep all of the earnings without having to split the equity or interests with any outside stakeholders. Self-financing, however, could prevent a company from reaching its full potential since it might not have access to the necessary networking opportunities or the backing of specialists and consultants.