Five Creative Ways to Raise Capital
Despite the crushing blow of the coronavirus, New Zealand’s economy fared better than anticipated, with only a 4 percent unemployment rate. On top of that, earlier last month, the country marked its 100th day of being COVID-19 free.
How New Zealand responded and managed to keep its national economy and health status afloat amidst this unprecedented crisis only cemented its reputation in the international community as one of the leading countries suitable for business and employment.
With low corruption and crime rates compared to other developed countries, vast fertile land, and a successful economy that has remained strongly stable over the years, New Zealand unlocked several small business opportunities such as business solutions, agriculture, tourism, and retail.
Seems inviting, right?
Nonetheless, even if New Zealand is a first-world country, opening up a small business is not done with a single snap of your fingers. There are many challenges when opening a business ━ from getting a proper license to managing your employees. The most challenging of all, though, is finding money to start your enterprise.
Bank loans might be the answer you have in mind since many small business owners approach banks for money to finance the opening of their business. Yet, it does not mean that it is always the right solution. Borrowing money from banks is a risky move for your business, which has not even started yet. When it comes to late payments, banks are not very lenient.
Unless you are already wealthy or have inherited a huge fortune from a relative, consider these unique ways to finance your small business.
Another practical way to finance your small business is to have a side hustle. With the convenience of the Internet, you can find a lot of job opportunities and earn extra income.
Depending on your skills and unique needs, you can earn a respectable amount of cash with your side business. Furthermore, side businesses usually offer flexible schedules and have low overhead costs. In no time, you can save the needed amount of money for your company.
Crowdfunding
In the past years, a handful of credible and good crowdfunding platforms have become popular among entrepreneurs, inventors, and the public in general. Several people have raised millions through crowdfunding. The most notable are GoFundMe, Kickstarter, Indiegogo, Fundly, and Fundable. Select the right platform based on your needs and goals. Make your campaign as persuasive as possible with your pitch and business model. You can even offer incentives to individuals willing to help you. Through those micro-donations, you will raise money for your small business.Angel Investors
Attracting angel investors is another viable option for raising funds for your business. Google and Yahoo are among the biggest tech companies today that were funded by angel investors. Angel investors are always on the lookout for the next enterprise and are willing to splurge thousands or even millions of dollars for any fledgling business they deem to have potential investment value. They are even willing to offer mentorship to inexperienced entrepreneurs. Despite how attractive angel investments might seem, there is a downside. In exchange for investing in your company, angel investors typically ask for a 10 to 50 percent share of equity in your company, which means you have less control over the future of your business.Bootstrapping
Bootstrapping simply means self-funding or building your company with nothing but your personal assets. You can tap into your savings account. Cut back on your spending habits. Sell some valuables. You can even sell your house online to raise funds for your business startup. Starting a business is risky, making traditional lenders wary of granting loans to entrepreneurs. It’s worse if your company doesn’t have a record of earning revenue. But with bootstrapping, not only are you able to jump-start your business; you also have complete control over your company.Side Business
Another practical way to finance your small business is to have a side hustle. With the convenience of the Internet, you can find a lot of job opportunities and earn extra income.
Depending on your skills and unique needs, you can earn a respectable amount of cash with your side business. Furthermore, side businesses usually offer flexible schedules and have low overhead costs. In no time, you can save the needed amount of money for your company.