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How to Raise Money for Your Startup

Starting a business can often be very taxing – on your pocket. It can get frustrating when you have ideas but don’t have the cash required to get your business off the ground. Unless you have large and deep pockets (or a large inheritance), finding ways to get the money for your start up is going to be a top priority.

It’s critical for you to quickly figure out how to raise money because there’s no guarantee that your business will be generating income right away, let alone making enough money to support your personal life. At least not yet.

In this post, you’ll be learning about some ways on how to create—and keep—your cash flow.

Don’t leave your job

The biggest problem with a lot of startups is that the founders have a dream of making money (which will happen hopefully) but they’re very unrealistic about when they will start making enough to pay the bills. They quit their job and get into their business full time and then the problems start.

Sticking with your job provides you with a steady source of income and stops the urgency of making your business bring in money. Keep your job and make your business a side thing until it really kicks off. A steady source of income will allow you to take care of the bills without the worries of where to get the money. Moreover, having a full time job will take the pressure off your business. You’ll also lose the fear of losing income from doing a bad job in your business. This is vital – often, people make terrible decisions because of the urgency of the need to make money fast.

It’s not about working hard. It’s about working smart. Keep your job (for now) while you do your business. It’s all about cash flow. When the income generated from your business exceeds what you get from your full-time job, then you can quit your job and work full time on your passion. But for now, keep your full-time job while working patiently on your business.

Keep your spending habits to a minimum

Be frugal. Keep in mind that you have a business to operate and a life to live. You need all the cash you can get. Don’t spend money on stuff that isn’t important. Instead, use the money to support your growing business. It’s what is often called delayed gratification.

Some novel ways of creating cash flow

1. Selling things online

Do you have books, CDs or DVDs, or anything that you’re not using? Why not sell them online?

The world is your marketplace! There are lots of ways to sell things online. What’s neat about this is that you’re not limited to sell only in your locality. Because of that your target customers become so diverse that you’ll be sure, with proper marketing, that there is someone out there who’ll be interested in what you have to sell. Plus, you don’t need to go out and shout about what you’re trying to sell. Just post a picture of it and say a few things about it and just broadcast it all over the internet. There are websites that allow you to sell onlin; Ebay and Craigslist are a few examples of ones that you’re sure to be aware of. Social networking sites are also a great help for this. Even if they won’t be the ones to buy what you’re selling, your friends will be the ones who’ll spread the news.

2. Garage sale

A garage sale always works. I’m sure you have things in your home that you no longer use. So why allow them to collect dust in the corner? Sell them. This will not only give you some good money, it will also clear up the space in your house.

Sometimes, it’s not easy to sell your stuff because they have sentimental values but hey, let’s get real here. You have a business to support and sentimental value won’t put food on your table. It won’t pay for your bills, or your child’s education. It may sound cruel, but it really isn’t. It’s all about prioritizing the things in your life.

Who are your buyers anyway? They’re your neighbors, your family, your relatives, your friends. So it should be comforting to know that your things will go to a place where it will be taken care of well. :)

3. Earn from giving your expert advice

This may sound like a lot of work because you need to become an expert. But basically it’s using what you already know to your advantage. Think about it, you may have a special skill or you may be a professional. You can use what you know in that field to earn money. People are dying to learn about a lot of things and they’d be more than happy to pay a fee for your advice. Don’t worry. You’ve studied about this for years so you could very well trust your knowledge on the subject.

You may be a professional a voice coach, an accountant, a web designer, a self-employed psychologist, or a successful sales professional. Whatever it is that you’re good at, sell advice on it! Everyone has something that they know about – maybe you know a lot about cars – sell your advice to people who are looking to buy a car. People want to learn new things and you may just be the person they are looking for. Earn money from what you know. You deserve it.

4. Rent things out

Look at the things that you have in your house or garage. You may think that you’re weird for owning something that not all people would want to have, but you may just earn something from it. You may have something that you could rent out for a good fee. Do you have some silverware, or porcelain dishes or a boat? A wedding dress or suit? Whatever you have there’s always something you could rent out for a fee.

So what’s keeping you?

I’m sure you get the idea. There are a million ways to create some cash in order for you to keep your business going. List down all the skills and knowledge that you have. What are your hobbies? What do you do when you relax? When it’s summer and the scorching heat makes you parched, what do you want to drink? What are your interests? Write everything down.

Once you’ve listed them down, exhaust every idea on how to make what you’ve listed create money for you. The very reason you’re in business is because you’re a creative person. Believe in yourself. And if you really need help, just ask… or surf online. The support that you need may just be a phone call or a click away.

Resources

Sell things online thru:

Related Video

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Your Thoughts

What are the things you did to help maintain the cash flow in your business? What suggestions can you give to help raise money for start ups? Are there any other novel ways that you’ve used to make money that have worked for you?

Please let us all know in the comments!

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About the Author

MKMohammed is a project manager and business consultant. He's an avid reader and loves to write.View all posts by MK →

  1. Stephen NellasStephen Nellas05-19-2010

    Thanks for the tips. I especially love the video! It’s funny. the guy is hilarious!

  2. WKWK05-28-2010

    Thanks.. If only you guys existed and posted this articles about 2 years back… But i would have to 100% agree with the points mentioned in this article.

    I left my “well paying” job to start a business from scratch and boy i tell you, it was a hugeee mistake.. I ended up going back to work after about 16 months.

  3. artwrter2010artwrter201006-02-2010

    I definitely love this post. I personally believe in sticking to your job first and make your business a side things for now. It’s a smart and logical thing to do. Even if you are tired of your job, be patient. At least you know that this is only a temporary situation. Sooner or later, you’ll have enough income in your business and then you can quit your job… That idea motivates me. :) Thanks!

  4. radicalwill2010radicalwill201006-02-2010

    Yeah, I agree: Work smart, not work hard. But is it also possible to work hard AND smart? Just a thought.

    Thanks for the post!