One of the hardest parts about starting a business is raising money. Starting a business is expensive, and it can be even more difficult if you do not have the capital to get started. There are many ways to raise funds, but here are three unexpected ways to raise capital for your new business.
- Create a minimum viable product. First, it can be difficult for new businesses to secure funding without actual market experience. Investors may not be that interested when your idea is just an idea. A way to get around this is to create a minimum viable product so your business can start making money immediately. This product tests the market and shows investors that money is coming in.
- Liquidate some assets. Next, you likely have some items lying around your home that you don’t utilize anymore. These items can be sold to help start funding your business. Whether you are selling an old treadmill or a few odds and ends you bought at a garage sale two years ago, every dollar counts.
- Collaborate with Nonprofits. Finally, one of the hardest things for a new business is getting its name out there. Collaborating with another business, especially a nonprofit, can be a mutually beneficial agreement. The nonprofit will have help reaching its goals, and you will have connections to utilize when you need funds.
Starting a business can be exciting, but it can quickly become a nightmare if you do not have the funds to invest. There are many ways to raise capital for your business, including creating a minimum viable product, liquidating some assets, and collaborating with nonprofit organizations. If this isn’t enough and you still need more money to fund your new business, you can always look into a traditional or SBA loan. Aspen Commercial Lending can help you determine what kind of loan is best for your goals.