In this write-up, we will discuss how you can fund your startup without investors. This question is most frequently searched over the internet. But there is no magic from where the money will come to you for starting up your business. You have to opt some options according to your need. We will share the most crucial ones with you. The most powerful and eccentric sources for the funding of your business.
Starting up a new business is somehow difficult for new entrepreneurs compared to experienced ones. An experienced one, can spend some money on a running business and become a successful partner but it is not possible for a new entrepreneur. Well! Have a look at all the sources that we are going to share with you for funding your new business. Do most have a query that What is the minimum investment in startups? Some firms permit you to invest the least amount of 2.5 lakhs to invest in startups.
- Look for a bank loan:
If you want to start up without an investor, the first option is to take a loan from a bank. But taking a loan from a bank needs to have a good credit history. Or you should have existing collateral. Banks give you a loan if you have some collateral to deposit them. And after that, you are capable to approve your loan from the bank. If you are US, citizen, you have another good option which is SBA which will fund money without any good credit history.
- Trade Impartiality:
This is another option that is available for new entrepreneurs is that you can exchange your skills on one platform. For example, you can collaborate with other office workers in terms of your skills. You can get free space for your office set-up and provide them with your computer skills in return for it. In this way, you can save some money by selling your skill in one place.
- White-labelling agreement:
This is another good option but it needs hard work to convince someone for your brilliant business idea. You have to seek a deliberate partner that is ready to give you an advance payment for starting up your business. It is sometimes called the white-labeling agreement.
- Became a partner of a startup Incubator:
There are many organizations available that provide you with an initial investment for starting up a business. As Y- combinator is a very famous organization that is associated with the large firms or maybe with the big universities. These organizations provide you with all the start-up resources to start your business from zero level.
- Look for bigger capital investors:
There are many professional investors available in the market that are ready to fund you all the initial money for starting up a new business. But they provide funds only to those companies that have proven business models and a team of experts that are willing to scale up the business. They are ready to invest millions of dollars in your business if you convivence them with your ideal business model.
- Look –up for local Investors:
Mostly in urban areas, there are many local investors available that are ready to support you in starting up your business. You can also find such investors through online sites like Gust. That will help you in finding the best local investor.
- Start a bankrolling campaign:
You can go for a bankrolling campaign, in which anyone can take part as per the jobs act, like Kickstarter. Where people come and make commitments to purchase your product for late delivery and they give you donations.
- Appeal for a small business grant:
This is a cost-free option for you. It may be a long procedure but it does not cost you anything in the last. It is a government-based program where the government is ready to fund you if you have an ideal concept of business or if you may come up with new technology. You just have to go to the Grants.gov site and search if you are capable for applying or not.
- Pitch your needs to friends and folks:
When you go for a professional investor to fund money for your start-up business. Firstly, these investors look at your credit history before they decide to support you. If you do not have positive commitments in your friends or folks’ circle. They will also do not permit you any funds.
- Bootstrapping strategy:
Go for bootstrapping. Bootstrapping is when you fund 90% of your business on your own. It may need years to collect the money for starting your business on your own but you can do it. Do not give up and be consistent.
Which business can be started with no investment?
There is only one business that you can start without investment and that is coaching. It may be virtual or physical depending on your will.
It was a brief discussion about how to start up without investment. Hope you like our effort to provide you with authentic information. If you like our write-up let us know in the comment section below.