Coming up with a business concept is easy – and if you're stuck at job you hate, you’re probably anxious to throw in your two-week notice and get started. Unfortunately, developing the idea of the business is the only effortless part of the entrepreneurship journey. In other words, don't take the leap just yet. The next step is generating seed money to bring your idea to life. Here are four options to consider:
If you’re seriously considering quitting your 9-5 to start a business, it’s vital to stash sufficient funds to cover your business and living expenses for at least six months to a year. That includes sacrificing instant gratification and slightly modifying your lifestyle. In other words, stack your coins so you can self-fund your idea and call your own shots.
As much as you want to quit your day job to focus 100 percent on that grand idea of yours, it makes more sense to continue working at your 9-5 to fund your dream. If you work during the day, get a part-time job in the evenings to cover your expenses and other resources you need for your start-up. If you do it this way, you’ll be able to accumulate enough money in your savings to self-fund your idea, without sacrificing your current lifestyle.
Whether you’re looking for Angels or Venture Capitalists, be prepared to give away a portion of your business. Another investment option is to look towards family members. Maybe you have a business-savvy aunt or uncle that would be willing to invest in your idea. A cautionary note: Before accepting any investor’s offer, make sure you’re absolutely clear on the terms. Some choose to be silent partners, while others want to a more involved role.
Crowdfunding is a fantastic source for generating start-up cash and brand awareness for your product or service. With popular crowdfunding websites such as Kickstarter.com and Indiegogo.com, potential investors are just a click away.