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How to Get Capital to Support Your Business

by Olufisayo
How to Get Capital to Support Your Business

Starting a business is a significant life decision. Beyond the many risks and rewards of running a company, it is an incredibly expensive undertaking. When trying to get your business off the ground, you need income streams to fund the work being done.

Many start-ups and small businesses seek the aid of angel investors to help grow their companies. Still, in the very early stages of development, business owners need to find other sources of capital. If you are just beginning your small business journey, consider these methods of funding your business.

1.  Invest in Stock and Cryptocurrency

Stock investments are one of the most common ways business owners have generated capital for their business. With a meager investment, stocks can be an excellent option for business owners with busy schedules. Additionally, the stock market is easily accessible and often more reliable than being an Instagram influencer.

If you’re interested in an investment with more risk involved, cryptocurrency could be a suitable option for your business. The value of cryptocurrency has fluctuated up and down faster than stocks for the last few years as cryptocurrency has become more prominent. The potential for gain is higher, but so is the potential for loss. Be sure to do your due diligence before investing.

2.  Consider Real Estate Investments

Real estate investments can seem like a daunting pursuit. Often people think that the bar for entry is too high, and real estate investments can be difficult and expensive. However, real estate investments can also be one of the most lucrative opportunities on this list.

The returns for real estate are huge and almost entirely passive; very little time investment is required after the initial offering. This makes commercial real estate investing an extremely intriguing opportunity for business owners looking for some extra cash. If you aren’t confident in your investment savvy, hire a real estate firm to help you place your investments. While it can be expensive to hire an investment professional, you will see returns on that investment.

3.  Crowdfunding

Many small business owners’ first investors are family members and friends. Crowdfunding relies primarily on the generosity of the people around you or strangers on the internet. In this way, it may not be the perfect option for growing your business’s portfolio. Still, crowdfunding can be a reliable way to get started.

Websites like Kickstarter and GoFundMe exist to help people build a sizeable fund for whatever they need. Many businesses like video games and board games, restaurants, film productions, and more use crowdfunding websites to help them get started. With moveable goals and milestones, your investors can see that your business is making progress, and you can thank them personally with gifts, messages, and updates.

4.  Start a Social Media Business

Social media is one of the largest and fastest-growing platforms that exist. New opportunities to make money have been popping up left and right within the social media space, and many of these opportunities are perfect for business owners. It only makes sense for entrepreneurs to take advantage of this.

Career paths like life coaches, podcast hosts, fashion creators, and others have become highly lucrative in the past couple of years. Brands sometimes pay influencers like these to promote products. Depending on the size of your audience, this could be a considerable chunk of change. Find your niche and start gathering an audience. If you find success, you could expect a significant amount of new capital for your business.

5.  Freelancing

The freelance economy has been steadily growing in the last couple of years, and it is progressively becoming a more lucrative option for business owners and contractors alike. With various platforms that freelancers can use to find work (Fiverr, Upwork, LinkedIn, etc.) and a flexible schedule, freelancing can be a desirable option to support your business.

Freelancers exist in a wide variety of fields, ranging from writing blog posts to coding websites. The common theme is that freelancers often can be self-taught or less experienced than their full-time counterparts. This can be an excellent opportunity to explore a new industry and generate funds for your business. With a low bar for entry, a flexible schedule, and sound money, freelancing can be a great side hustle for entrepreneurs.

Get out there and learn more about a freelancing field that you are interested in. Start contacting businesses and have a long list of clients. You’ll only have to work as you want. Devote the rest of your time to your business and enjoy an influx of new capital.

Being a business owner can be difficult at first. If you are especially proud of your idea, it can be frustrating to put in the initial work to gain capital before doing what excites you. Once you get your business off the ground, however; it all starts coming together. Hopefully, this guide gave you some ideas of how and where to find that initial investment to grow your business.

About the Author

Roni Davis is a writer, blogger, and legal assistant operating out of the greater Philadelphia area.

Photo by Pixabay

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