Collegepreneur Staff Writer
You’ve got the drive, you’ve got the ambition and one
whale of an idea, and if genius were a currency you’d rule the world.
But you need money to launch your business and you need it last week,
right? Finding cash doesn’t have to be an arduous task. In fact,
properly executed it can happen quite quickly. Here are a couple of
ideas to get you started.
Personal Savings
Most new entrepreneurs tap into their own bank accounts or savings to fund
their businesses.
Advantages: It’s available and it’s yours.
Disadvantages: Leaves you without an
emergency stash.
Sell Something
In addition to Ebay there are tons of ways to sell products or services for quick cash.
Look around your home, apartment or dorm room. You’re bound to have something
you
don’t need or want any longer. Maybe someone else wants it. You can
also sell your expertise. Can you tutor someone or coach someone?
Instant cash.
Advantages: There’s a consumer for practically everything. From
old sneakers to memorabilia to textbooks. If it has value, someone
will buy it. And with the Internet, it’s easy to put up a website
and For Sale sign and be in business in the next 24 hours.
Disadvantages: It may take some time to research to fi nd your
customers.
Friends and Relatives
Nobody
knows you like the ones who love you. They’re also going to be your
best bet for immediate funding. Most people have at least one person
who believes in them and has a few dollars to spare. Instead of trying
to fund your business
with one investment from a family member or
friend, section off pieces of your business and get it funded in parts.
In other words, if you need $200 for business cards, $350 for a website
and $75 for signage, get individuals to bankroll individual startup
needs rather than asking one person for the entire $625.
Advantages: Often money is loaned interest free or at a
low interest rate, which can be benefi cial when getting
started.
Disadvantages: Can strain relationships if things go south.
Banks and Credit Unions
The
most common sources of new business funding are banks and credit
unions. They’ll need a solid business plan to even look your way.
Advantages: If you have a long-term relationship with
them they’re more likely to respond favorably to doing
business with you.
Disadvantages: Sometimes require items college students
don’t have – collateral such as homes and other assets.
Venture Capital Firms
These
firms help expanding companies grow in exchange for equity or partial
ownership. If you have a clear multimillion dollar business, VCs are a
realistic funding source for your business.
Advantages: Typically have tons of money to invest.
Disadvantages: Generally invest in established companies
trying to go to the next level, although more VCs are
being formed to address the growing segment of start-ups.
Resource: A new company wants to change the landscape for raising capital. Check 'em out at www.raisingcapital.com
