If anyone out there who is like me, looking to start up a home business, it can be hard to know where to start. You need some kind of funding, even if it is in small measure but it has to be equal to your startup plans and be able to fund your ideas. I thought we can share some ways (or tips) to fund a startup business for beginners to help each other out while helping ourselves.
There are a lot of recommendations that one should bootstrap as long as possible. This means you would be the only funder so it would be helpful to have a savings ready to go when you launch your startup. While this is doable for online businesses that are smaller or require less upfront costs, something like this always isn't an option.
Great idea for a thread!
You are right about bootstrapping but many people overlook it or don't have it as an option so the next best thing is to look to family and friends. Get their financial support as well as see how they can help without money to get things rolling. Some people know the right kinds of people to really push things into high gear for you. From there you can look into crowd funding. Two of the big sites are Go Fund Me and Kick Starter. Kick Starter is better for products and Go Fund Me tends to be better for causes.
Self-funding is fine for smaller ideas but you will run into trouble if your ideas get too big or start too large. Never invest all of your finances into a startup no matter how promising it is. Yes, some people out there have gotten success doing this but most end up homeless.
It all depends on the size of the startup. Some startups are so small that they don't require all that much time or investing so you can easily find a partner and get things rolling.
As for tips, I would recommend learning your budget for everything outside of your business plans and making sure you are not cutting into that.
When it comes to funding a new business plan, you want to ensure the ball is always in your court. Don't let people who have money walk all over you or put you in a position where you want to give up. There is a lot of nasty competition out there and you have to be ready for it.
I never liked the idea of bootstrapping for anything other than a small business. If you run a small online business, especially one that you don't need to buy anything until orders are made, it will be easy. However, a lot of businesses require a lot of upfront costs and expenses that end up quickly draining your savings.