Having an idea for a business that you can start can make you feel excited, but once you start to think about the costs involved, you might become concerned. Packaging, production, and other necessities that you'll need to get your product out to consumers are costs that will add up, and since you're just starting out, you may feel discouraged. Luckily, there are some funding possibilities that you can explore. Here are some possibilities that might help.
Sell Old Items
The first thing you can do to raise money for your start-up is to take a look at everything you own and decide what you can do without. If you've never sold old clothing or belongings on online auctions or in flea market sales, now is the time to start. A lot of new business owners look outward for funding, but there is a good chance that you can raise some money from your own old things which can fund at least a few samples to show other funders at a later time.
Seek Peer-to-Peer Funds
For some people, traditional banks offer terms that can be difficult for a new business to adhere to. Even if the terms are fair, you might not be able to get as much money as you need. In that case, peer-to-peer fundraising may be something that works for you.
With this type of funding, the so-called "peers" are people in the industry who have banded together and pooled their money to be able to offer money to those like you. You may find that their loan terms are more agreeable and easier to repay. However, be aware that those in charge of disbursing funds will also want to see your business and marketing plans; some of these groups may also want to interview you a number of times in order to make sure you're likely to be able to pay back the money once you start selling products.
Talk with Current Lenders
If you already have a mortgage or another type of loan out with a particular lender, it's smart to go and talk to them about securing a small business loan. Because you already have a history with their company, they might offer you lower terms than you'd get if you just walked into a bank looking for money. The only disadvantage of getting a loan this way is that you are then in debt for a great deal to one company; it will then be important that you're confident about your ability to pay back all your loans in a timely manner.
When you investigate the fundraising opportunities discussed above, you should be able to cover most if not all the costs you need to get your business off the ground. Talk to others in the industry you hope to enter in order to get additional ideas.