If you have an innovative idea for a business, you may be concerned about how you can realistically come up with the capital which you’ll need to turn your idea into reality. If so, simply continue reading to discover how you can launch a successful business with little capital during a pandemic.
Consider Crowdfunding to Raise Startup Capital:
There are a wide variety of platforms which will allow you to sell equity in your start up in exchange for capital. If your business meets a need and boasts a solid business plan, you may be surprised about the number of individuals who may be willing to purchase shares in your business. Alternatively most equity crowdfunding platforms will allow you to offer convertible notes instead of shares. Convertible notes are a form of debt which convert into shares, if your business chooses to raise additional funds in the future.
Depending on your business plans, you may be able to raise hundreds of thousands of dollars which will allow you to get your business off the ground. However, many companies have successfully raised over a million dollars on reputable equity crowdfunding platforms.
In order to attract large pledges ensure to keep your followers updated on your progress, throughout your business’ raise. Lastly, be prepared to answer dozens of questions from perspective investors for the duration of your campaign. As some individuals will only invest in your business if you’re able to answer all of their concerns and queries.
Arrange Meetings with Potential Stakeholders:
If you’d rather deal with one or two major stakeholders over hundreds of smaller investors, you may want to arrange meetings with potential stakeholders who may be interested in investing in your company. Firstly make the decision of whether you’d like to conduct business with a silent partner or an experienced stakeholder who will be able to give you valuable business advice.
Due to the pandemic you may even want to reach out to potential stakeholders who are interested in pursuing financial opportunities in your chosen industry, to discuss your business plan via Zoom.
Instead of agreeing to the first deal which you’re offered ensure to speak to multiple potential investors so that you’ll be able to accept the best possible deal for your business. Ideally you should aim to part with the smallest percentage of your business’ shares as possible for the largest amount of capital possible. Also remember never to sign a deal that you’re not happy with and to ensure that you maintain the vast majority of your new business’ shares.
If you’re unsure of how to contact potential stakeholders you may want to visit a forum for angel investors or to contact free business mentors who may be able to provide you with valuable contacts.
Take Out a Small Business Loan:
As interests rates are currently low as a result of the pandemic, you may be able to negotiate a business loan which boasts a low interest rate. If you’ve founded successful businesses in the past or have a great working relationship with a bank manger, it’s well worth considering taking out a small business loan.
Leverage Your Mortgage In Order To Provide Your Business With Startup Funds:
If you truly believe in the potential of your business idea and have taken out a mortgage to purchase your family home, you may want to talk to your bank manager about refinancing your home in order to provide your business with start up capital. Just be aware that this particular idea involves a high element of risk and that you could end up losing your home if your business fails and you fall behind making your mortgage repayments.
Pick Up a Side Hustle:
If you have marketable skills which you can use to make extra cash, you may want to consider picking up a side hustle such as working as an online English tutor in the evenings to earn extra money to fund your business. Just keep in mind that this route may take a long time and may use up valuable time which you may need to work on starting and running your own business.
Start Off Small:
In order to keep your production costs low you may want to consider running an online business. So that you’ll be able to run your business from the comfort of your own home. As you start to make a profit, you’ll then be able to reinvest your funds into your business.
So if you’re ready to start a business with no capital or little capital, don’t give up on your business idea until you’ve tried out some of the creative business ideas which are listed above. All of which can be used during an international recession.