This may seem obvious–everyone knows you can go to the bank and get a loan to fund your brilliant new business idea. The reality is that unless your idea becomes incredibly successful you will be paying off the interest from your loan and your profit margins may as a result, be comparatively small.
Depending on where you reside you may qualify for a government grant to subsidize your business. Upon finding your regional government website, you will be required to fill out some forms online to see if you match existing criteria. These grants are typically designed to serve the interests of the district or region as a whole through addressing issues of distribution be it population density, or the offering of general assistance to those who would otherwise find it difficult to qualify for a bank loan. There are grants available to youth and there are also screening processes that accompany them.
Many successful small businesses in North America and beyond were established through partnerships with family members or trusted friends. These partnerships were typically established through common workplace relationships, interests and/or goals. This may be a viable option where you would be able to pool your resources with a trusted individual or individuals without risking excessive debt. The downside to these relationships is that the introduction of a new business dynamic can lead to unforeseen conflicts and drama that interrupts the flow of business at best and tests family relationships and friendships beyond their limits.
The emergence of social media has given rise to Crowd funding which may allow you access to people with money who love your business idea and want to offer their support. Generally they would want some form of compensation in the future. At this point it would be up to you to prove that your business will be successful. Funding platforms exist for different causes, such as raising money to help someone in trouble. An informal way to raise funds through crowdfunding would be to post your business idea on social media with an account number or contact for those interested in finding out more, possibly contributing.
The more formal way would be through finding a Venture Capital organization or Angel Investor who would be interested in offering backing. There are legitimate websites that offer a list of potential investors in North America who invest in business ventures be it to profit directly from something new that may have huge growth potential or because they want to help establish or increase the sustainability within their region. Some organizations will only provide assistance if you live within a certain radius of their area. You may be required to sell your idea through “cold contacting” the members on these lists and having a very detailed and far-sighted business plan in place that they can view and assess. If and when these organizations contact you it’s your responsibility to make sure that you thoroughly appraise and investigate them to make sure that they are who they say they are. Screening people you meet on the internet, especially in large numbers, is never fail-safe.
Online investing is an option worth considering as, depending on what you invest in, you may have the power to leverage your money and compound your profits through a market price move, be it up or down in a remarkably short amount of time. Diligent monitoring of market movements and stop losses, along with other enlightened strategies can produce a strong source of funding. Several Broker/Dealers offer a wide selection of instruments to trade whereby you will be able to leverage your funds. CMC Markets will also allow you to open a free demo account where you can try simulated trading without using real money. This is a very valuable education as it enables you to test your knowledge and fine tune your trading strategies in advance. It also offers educational tools to set you on the path to successfully creating a new stream of cash flow, provided you set aside a bit of time to make it work for you.
How will you use your resources? Depending on how much drive and personal determination you have, the wind in your sails will take you as far as you decide to allow it.