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By Thea Theresa English

Creative ways to fund your business

You are looking for ways to fund your business since it is hard to get a loan from a bank. This is when you will need to be creative in seeking the funds. One such method is crowdfunding. With crowdfunding, you register with a crowdfunding site and you solicit funds from the site's members for your business. Here are other ways to fund your business.

Family and friends

Another way to obtain funding for your business is to seek help from friends and relatives. You want to tell them the nature of the new business and why you believe that it will succeed long term. You should also write out the terms of the loan in writing and the agreement should include the amount you are borrowing, interest on the loan and the date of full repayment. Once your business starts to make a profit, you want to repay as soon as possible.

Your savings account

If you have substantial funds in your savings account, use them to pay for the costs associated with starting your new business. Be sure to replenish those savings you used once your business starts doing well so that you will have funds for business-related emergencies.

Consider getting a business partner

Another neat way to obtain funding for your business is to get a business partner. The business partner not only has the money needed, but he can also offer expertise and mentoring to you. You can locate potential business partners through loved ones who are entrepreneurs, good friends, memberships to professional organizations and at trade shows. It is best to get a business partner who understands the industry your business is a part of and who believes in your idea.

Startup competitions

You might have a tougher time with this option, but it is worth a try. There are local, state and business organizations that offer a cash prize to startup companies whose ideas are the most innovative and viable to the community. Read the contest instructions carefully to get a clear idea of what is expected.

Business grants

If you don't want to take out another loan but you need funding, you should consider business grants. There are nonprofit organizations willing to give grants to aspiring business owners. For example, an organization that helps single mothers reduce their dependence on government benefits might offer business grants to single mothers who are starting businesses.

Get a side hustle

For those who are really serious about starting a business but whose income is not enough to fund the idea, then it is time to get a side hustle. Some good ideas for a side hustle include selling items online, freelance writing, being a virtual assistant, part-time retail work and fast food jobs. Your side hustle income can be added to your savings in order to boost funds for the new business.

It is not easy to get funding for your business but with the above-mentioned strategies, it is possible to have what you need to make this a reality.

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