Small business

Innovative Funding Ideas for new Business Start-ups

startIn many ways, there has never been a better time to establish a business or pursue an independent career path. This is thanks to a number of technological, social and economic developments, which have empowered entrepreneurship and freelancing as viable careers. With technology giant Intuit estimating that 40% of the American workforce will be freelancing by 2020, it is clear that this is also a global trend that runs throughout the Western world. This offers considerable flexibility to individuals in the modern age, while it will also help to develop the employers of tomorrow.

While the dream of launching an independent business may be more accessible than ever before, however, it is far harder to achieve sustained commercial success. There are multiple challenges facing entrepreneurs and independent contractors in the 2014, especially when you consider the impact of Google's latest Panda update and the issues posed by changeable lending criteria. These factors and many others make it difficult to establish and successfully market and independent venture, so aspiring entrepreneurs must tread carefully when entering their industry of choice.

The issue of funding is arguably the single most important challenge facing new business owners in the modern age. Entrepreneurs are therefore fortunate that they can rely on a number of creative funding options, which have been designed to help individuals bring their ideas and concepts into life. Consider the following examples:

1. Consider the benefits of Product Presales

It is a common myth that funding is required to begin trading, as aspiring business owners usually develop a product or service long before they have a fully integrated model. If you do have a fully developed product but require funding to launch mass production or marketing drives, however, you may want to consider selling goods as a way of raising capital. By selling a relatively small selection of products directly to the consumer market, you can raise significant amounts of cash that can subsequently be invested into boosting your inventory and creating national awareness, while also negating the need for excessive borrowing against your assets.

2. Source Crowdfunding for your Business Venture

While it is scarcely a new concept, crowdfunding remains an excellent way of acquiring funds for your business launch. Resources such as Kickstarter and Indiegogo dominate this sector, and they operate by enabling small businesses to pool investments from a number of different sources within a single space. This money can then be invested into driving business growth, while entrepreneurs can also benefit from the fact that they are not required to offer up an equity stake in their business. It is also far easier for businesses to access funding through these medium, and often their biggest challenge is choosing a viable and reputable platform to partner with. So long as you are selective and precise when detailing your commercial vision, crowdfunding can help you achieve market prominence quickly while retaining control of your venture.

3. Establish a Side Business

Not all businesses are created equal, which means that while some require significant funding launch others do not. The latter enables you to consider unique and innovative methods of funding a new creative concept, as you look to generate income through more simplistic and easy to establish business models. This principle can also be taken further, as you look to sell your existing product through an affiliate program with a partnering website. Although this may require you to adopt a long-term outlook and offer a percentage of your sales as commission, the additional income that you generate can be pooled and used to market and sell your product directly to the consumer market.

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