The best way to have financial independence is to make your own money, instead of working to make money for someone else.
Not for your boss.
And certainly not for a facking corporation.
A lot of people get discouraged about launching a product or servie for lack of capital.
Most of the time, this is just a pathetic excuse for being too lazy to act on your Vision.
It’s time to put an end to the excuses and get moving.
Which is why I’ve put together a list of ways to raise money for your business and get a product to market ASAP.
If you have questions or comments, hit REPLY and let me know. I read every email and respond to every question by Patreon supporters.
A lot of these suggestions will seem obvious, but you’d be surprised how blind people get when they are looking for excuses not to take action.
Here are 11 ways to raise money for your own business, in no particular order.
- Ask friends and relatives for a loan or partnership in the business.
If you don’t have the brass to ask your own family for $$$, how are you ever going to approach clients? Don’t be ridiculous and ask the parental body to bankroll your business idea. It’s a way to validate your product immediately (which is not to say that you should stop of they don’t buy into it).
Go bigger and reach out to every friend and relative with “the money”. There is zero shame in it – if anything, you will stand out for taking initiative to build something, unlike 95% of people. BE SHAMELESS, ask big – and keep asking.
- Take on a day job and save.
This is the trickiest way to raise capital and one to be avoided except as a last resort.
It’s not just that the day job eats up most of your time and might be psychologically exhausting. It also presents a comfortable “safe” option to retreat to when your business don’t work out.
Because it won’t. Every business idea goes through several circles of hell until it starts generating cash. So-called entrepreneurs fail because they give up as soon as something doesn’t just work out overnight. And go back to the corporate job.
Be careful about this dynamic. Burn as many bridges as possible without getting absolutely reckless. Know your options at all times.
- Crowdfund using an online service like GoFundMe and Patreon.
This requires some sales and marketing skills, but then how do you hope to run a business if you don’t get sales and marketing?
Crowdfunding is a great way to raise money because it creates the minimum amount of obligations beyond delivering the product you’ve already promised to deliver. To go this road, it would help if you learn some copywriting and establish an online presence, then build an email list of future customers. None of those things require money upfront.
- Sell your fracking junk.
Understand that getting ahead in business requires sacrifice. The number one thing you should do is sell absolutely anything that doesn’t help you generate revenue. And cut all expenses.
Cancel your any TV and videogame subscriptions. Are you kidding me? You want to launch a business and you’re watching TV? And sell the gigantic plasma screen too.
Sell your car if you don’t need it for business. It’s a lump of mental that bleeds you cash daily and eats up time by infinite opportunities for distraction.
Sell your house and move to a smaller apartment. Sell everything that costs money to maintain, but can raise cash on the market.
- Build a business plan and get a bank loan.
This is difficult and may not work out easily, especially if you don’t have good credit or income. That right there is the catch 22 and why banks are useless for funding your business.
Here’s the part you don’t understand.
It’s not that magical entity “the bank” that signs your loan application. It’s the loan officer (and maybe the branch manager) who approves it.
Keep going back to them and talking your book: meetings, calls, emails, anything. Invite them to dinner at your house. Embrace their rejections. Use your imagination and do whatever it takes and make them like you – without neediness. Overwhelm with persistence, kindness and competence.
- Validate with customers.
Go to your future customers and ask them for money to bankroll your product development. This is similar to crowdfunding in that you ask people to pre-pay without an actual product. But you do that in person with whale-sized clients, not thousands of people online.
How do you get people on side with their wallets, if you have zero business experience and no track record?
This is the subject of my next sales missive for supporters on Patreon. For the next three days only, it will be accessible for everyone at the $30 tier. After that the access gate goes back to the regular $90 and $265. Sign up here and don’t miss out.
- Lever up using credit cards.
NOT the stupid way you’re thinking of.
Look for credit card offers with 12-18 months of no interest on new purchases and simply open enough cards to be able to finance your product and business launch. You only need a good credit score and income to get approved – no business-loan application silliness. But don’t quit your job before getting approved for enough credit lines to cover your expenses for 12-24 months forward.
And don’t forget the interest will go to 20-25% after, so you better be getting cash from your business by then.
You can also get actual cash from your credit cards.
Find 2-3 credit card offers that come with no-interest balance transfers and apply. Use the card very scantily for a couple of months, and you’ll probably be allowed to draw money from the credit line directly into your bank account at the same 0% interest for a year (with some upfront fees). If you’re a supporter on Patreon, feel free to DM me for specific recommendations.
- Find an angel investor.
Use your network – and your web search skills – to look for angel investors in your area or in the market you seek to enter (make sure they’re not invested in a competitor you aim to disrupt). Go with relentless cold call and email, request meetings, show up at their offices – but always have a concrete pitch to give them.
Don’t give up and keep coming back – the same strategy as with the loan officer at the bank. Kindness and competence win the day.
The difference is that an angle investor like myself will give you money in return for a stake in the business, not as a loan. Understand the costs and benefits of that, and don’t get taken for a sucker.
- Apply to a startup accelerator.
There are startup accelerators in many major cities and you often don’t even have to be physically located there to get funding. But you have to pass certain criteria and several rounds of pitching to get funded. Use web search to figure out what’s available for your line of business. If you have questions hir Reply or shoot me a message on Patreon.
- Get a handout from a nonprofit.
There are many nonprofit organizations that help start third-world and minority businesses. Don’t you dare pass up this opportunity because you’re too “proud” to take it. Because that would be too stupid. Use every opening to advance.
- Parse the product and sell as a service first.
With many products it’s possible to parse the product into smaller bits and start selling before you launch the big thing. You can also start selling a product as a service first.
For example, if you want to develop a high-value online course, but don’t have the money for it, you can make money coaching or teaching personally the exact same thing. That way you make money, establish a reputation and may potentially end up finding people willing to bankroll your business just because they’ve previously been your consulting customers.
Or you can segment your online course or use tangential information to create guides, manuals and textbooks which you can sell online.
If you have other ideas, feel free to shoot me an email, and we’ll add them in for the next edition of the list. Share your experience if you’ve tried any of these avenues to launch your own business.
If you find value in the daily email, you’re more than welcome to join the community on Patreon. Supporters get exclusive content and benefits, but that’s NOT why you should choose to contribute. Do it as a commitment to yourself that you will get the most applied value from what we do together. Here’s the link again: https://www.patreon.com/startupdaemon.
Now go forth and conquer!