We all have dreams to fulfill, ideas that can be brought to reality through projects that help us to obtain extra income, and even to live from them if everything goes as we expect. But we always find the same problem: How can we get funding to develop our idea?
Entrepreneurship has positive and negative aspects. The financial part of your project can cause you concern.
But today you have different ways to get the financing you need to start it without risking your money . Here you will discover what those options are and you will find the information to know which is the best for you.
When you talk about advances or financing, you think of banks. It is true that they are a reliable option. But it is not the only possibility. Internet offers you different alternatives and you can also explore in public administration. By choosing well you can see your project come true.
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How do I finance my project?
The beginnings always generate doubts and uncertainty, especially if you see that your finances do not allow you to put all the meat on the grill, but all is not lost. These are the alternatives that you have at your fingertips, your only obligation is to choose correctly.
- Request a bank loan
- Go to private investors
- Ask about public aid
- Resorting to Crowdfunding and Crowdlending
- Using the “Bartering” technique
- Talk to family and friends
Why ask the bank for a loan?
This is the most classic alternative. A large number of entities offer products designed to provide the financing that SMEs and entrepreneurs need . It is a very safe option. But you must inform yourself of the conditions required by the bank and assess whether it really suits you.
Remember that entities are sharp on deadlines. You should also bear in mind that if the entity does not see real possibilities in your project and you do not have an economic situation that guarantees that the money will be returned to them, it is likely that they will reject your proposal.
Go to private investors
These people are also known as ” Angels Investors “, they are investors specialized in different business sectors. They are dedicated to studying the viability of different projects and if they detect that they have enough potential to generate positive results, they help finance them.
They can also advise you on the evaluation of factors such as the level of risk.
Ask about public aid
Public administrations are a very interesting alternative. Many regions and municipalities publish subsidies to develop projects that improve employment data or add value to society.
Check the pages of these public bodies and find out about the requirements and conditions, the opportunity may be here.
Resorting to Crowdfunding and Crowdlending
These are the great opportunities that the internet offers you. Crowdfunding platforms allow you to publish your project, interested parties can make a contribution in exchange for a reward they receive when you make your idea come true. This consideration does not have to be cheap.
It is a system widely used by musicians and writers that rewards their collaborators with the delivery of unpublished material or tickets to concerts and presentations.
Crowdlending works in a similar way, you publish your project on a digital platform and its managers evaluate the possibilities. If your initiative is good, interested investors give their contribution. In this case, you have to report on your progress and it is likely that you will have to give a financial reward when everything has started.
Using the “Bartering” technique
This technique is based on exchanging services with other companies to obtain a benefit that is not monetary. It may not bring you the money you need, but it helps you save and reduce costs.
The big drawback is that you must trust the other party, so if you decide to use this system, the best thing is to do it with trusted entities that you know will comply.
Talk to family and friends
This is another classic alternative. You can enlist the support of your close circle so that your project takes its first steps. This option also has its risks. Although they are extremely trustworthy people, you always have to make the terms of the agreement clear.
You must comply with the agreement to prevent a bad decision from harming you personally.
You already know that the beginning is always hard, but a “no” is not the end. As you can see, you have different alternatives to get the money you need.
The key is that you know how to choose, and before making a proposal, analyze your project well and see the possibilities it has or the points where it can improve. No one but you knows how far it can go, and money is not an insurmountable obstacle.