Here's 8 simple ways to raise money; I've also included the Pros/Cons of each & some tips
Boot-Strapping
How it works: use own profits to re-invest into the business
Pros: minimal risk on your end, gives you time to perfect your craft
Cons: very slow
A Job
Pros: dont have to pay back, doesnt take part of your company
Cons: trades money for time that you could be investing in your business
Tip: could be in your field so you gain experience, try to get something that doesn't interfere with your business, preferably afternoons or nights so you can focus on your business in the mornings when you are fresh/full of energy
Freelance
Pros: only a project commitment, can work on your schedule
Cons: time for money
Tips: pick a skill that could help your biz like copywriting
Credit Cards
Pros: simple to get
Cons: most have high APR's (an APR is the % they charge)
Tips: introdcutory offers give you 6-15 months interest free, also get one with points that could help your biz
Loans
Pros: dont lose equity, simple to get
Cons: have to pay back, need good credit/guarantee with personal credit or release biz documents with proof of rev/profits etc
Tips: banks give the best %, after that look at Lending Club or Prosper, dont even think about Kabbage
Equity
Pros: dont have to pay back
Cons: lose part of your company/lose part of your profits forever
Tips: if you give equity to someone make sure they bring something to the table other than money (experience/connections)
Grants
only available to certain industries
check out the SBA for more information
Working Capital by Paypal
basically they give you money upfront and take a percentage of your paypal sales until you've paid it back
Pros: pretty good pricing, simple & fast
Cons: its Paypal
Tip: if you use Paypal for your business its easier to qualify
Hope this helps some of you guys that feel 'stuck' because of capital
Boot-Strapping
How it works: use own profits to re-invest into the business
Pros: minimal risk on your end, gives you time to perfect your craft
Cons: very slow
A Job
Pros: dont have to pay back, doesnt take part of your company
Cons: trades money for time that you could be investing in your business
Tip: could be in your field so you gain experience, try to get something that doesn't interfere with your business, preferably afternoons or nights so you can focus on your business in the mornings when you are fresh/full of energy
Freelance
Pros: only a project commitment, can work on your schedule
Cons: time for money
Tips: pick a skill that could help your biz like copywriting
Credit Cards
Pros: simple to get
Cons: most have high APR's (an APR is the % they charge)
Tips: introdcutory offers give you 6-15 months interest free, also get one with points that could help your biz
Loans
Pros: dont lose equity, simple to get
Cons: have to pay back, need good credit/guarantee with personal credit or release biz documents with proof of rev/profits etc
Tips: banks give the best %, after that look at Lending Club or Prosper, dont even think about Kabbage
Equity
Pros: dont have to pay back
Cons: lose part of your company/lose part of your profits forever
Tips: if you give equity to someone make sure they bring something to the table other than money (experience/connections)
Grants
only available to certain industries
check out the SBA for more information
Working Capital by Paypal
basically they give you money upfront and take a percentage of your paypal sales until you've paid it back
Pros: pretty good pricing, simple & fast
Cons: its Paypal
Tip: if you use Paypal for your business its easier to qualify
Hope this helps some of you guys that feel 'stuck' because of capital
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