Every startup, in every field, at any point, can be tricky.
Although in general you can teach yourself to do things on your own when it comes to making online money, there’s also the type of business that requires a cash base so we’re going to address those cases today.
A lot of the time you can come up with a great idea, but then you’re like “how am I going to raise enough money to pay for this?” It’s hard to get running with your idea if you don’t have any funds to pay for the necessary technology and resources that you’ll need to make it into a reality. So, today I’ll be talking about way to raise money and get some startup cash so you can be a success without having to dish out the money from your own bank account.
Have you ever heard of Kickstarter? It’s a website where you can post your idea and then give others the opportunity to support you. A lot of the time people will reward donors for getting involved by giving them the first opportunity to get their hands on a product when it comes out or by giving them some sort of credit. This also gives you the chance to see if your idea will be interesting for buyers as you can get a lot of great feedback.
Some savvy investors like to come back and help the “little guys” after they’ve had their success. They look for companies that are upcoming and help them out in exchange for a share of equity in the company. If you’re looking for an angel investor you’re going to need to ensure that they see the financial value for them in supporting you. Most of them are purely doing this as a way to leverage their own money, and no one wants to invest money in a sinking ship.
Family and Friends
You can always ask your friends for family for a loan when it comes to financing your site startup, but this can cause a lot of problems later on, whether you’re successful or not. Think of it this way, if you’re successful then the investors might think that they are owed more than they loaned you because it directly contributed to your success and you couldn’t have done it without them. If you’re unsuccessful then the friend or family member is going to feel like you took their money and it could affect your personal relationship with them. In my opinion, if you ever decide to borrow money from a friend or family member you should be perfectly clear about what risks are involved and how they are going to be compensated if your idea is a success. You should have this on paper in an official document and have a friend (or lawyer) look it over before signing. This will help to preserve your friendship and give you the money you need for your startup.
You can always use your credit cards to help cover your startups costs. Just be aware that credit card interest rates can be very high, and that small amount that you used initially can accrue interest faster than you know it. Credit cards are good for short-term loans, but usually not that great in the long run.
Whichever you might choose, remember to always carefully research and weight your options. The internet is a huge pool of information and nowadays, being witty takes you a long way, no matter the type of business you’re in for.