One deterrent to starting a small business involves money. Certainly, finding the funds to start a small business is extremely frustrating for the potential entrepreneur. Their primary funding goal is to obtain enough money to start the business and have enough to help the business grow through the first year. Of course, a potential entrepreneur might go the traditional route to fund their new business. However, some creative people have discovered very reasonable ways to fund their small business. Typically, it involves just a bit of brainstorming or thinking outside of the box.
Most new entrepreneurs have not established a sound credit history and have difficulty getting a traditional business loan. Some creative people decide to use their credit cards or savings account to fund their business venture. Certainly, using credit cards is risky and using savings funds will deplete money at hand. However, they find that it is worth the initial risk.Friends & Family
In some cultures, friends and family are the primary source of funding for an individual starting a business venture. The individual might offer their friends and family a deal. Invest funds in the business venture and in return they will own a small percentage of the business. Often, family and friends are very willing to invest in the business because they want to help the individual and business achieve success.
Online Funding Sources
Thanks to the Internet and social media, it is easy to get a crowd-funding project started almost in a mater of minutes. What is crowd-funding? Well, it is a way to gather together a group of small investors to fund a small business venture or raise money for a business project. For example, an inventor has a great new project concerning a machine that filtrates the air in a smoky environment. They want to raise money quickly to start the project and might go to a site like GoFundMe to get the small business project off the ground. In fact, this online crowd funding site has a section called business and entrepreneurs that is dedicated to raising funds for that group.