Perhaps you’ve run through your initial seed money, or you’re finding that the early expansion of your business is accelerating faster than the cash flow can accommodate. Raising capital for your new business can seem like a stressful endeavor but there are several Creative Ways to Raise Capital Funds for your fledgling business, even in today’s slow Irish economy.
Most new businesses start with a personal loan on behalf of the business owner, based on the credit-worthiness of the owner. Most often, personal loans require some form of collateral, either the business owner’s home or car. However if your personal assets are encumbered (ie your home is heavily mortgaged) or you’re unwilling to risk personal assets on your business’s success, you may need to look at other sources of funding.
If your business idea is compelling and you’re certain it will succeed, consider approaching friends and family members for investment. Alternatively, ask for references for “angel investors” – people in your extended network who are looking to invest funds silently in exchange for an equity share of your business.
Social lending is the practice of two private individuals agreeing on a private loan, typically with the help of a broker who knows both parties and can make the introduction. If you’re unable or unwilling to look at financing through your bank, consider looking for social lending sites and brokers in your area for recommendations.
Gather Funds Directly
If your business idea is in the services area or based on a particularly niche skill set, consider hosting workshops or seminars in order to both promote your business and solicit potential investors. Simply marketing yourself as an expert in your industry serves the dual purpose of networking you with those who can help support your business financially, as well as creating contacts for new customers.
Asking for donations could be another option that you think about when trying to raise capital. Audience members (either in-person or online) may be willing to give you money to help you fund your dream. Those who believe in the future of your company are usually willing to invest in your dream as well.