Raising Money For My Business

[computerguy4783]

Ive done computer repair and network installs as supplemental income for the last 10 years. I've recently decided to make it my full time job. I have explored several possibilities for raising money to get started. A bank loan is pretty much out of the question. I set up a page on this site

http://www.gofundme.com/save-the-electronics

started off ok, raised 75 dollars, then it hit the wall. i don't know what else to do

any ideas from people that have been in similar situations? or if anyone wants to donate to the cause would be greatly appreciated

[AlexB1]

Hi computerguy4783

The first question is what do you need money for? I know this sounds like a crazy question, but often people think of step 1 of starting a business as "raising money", when a lot of businesses do not need to raise. It sounds like you already have a client base, so if there is a way to get your business off the ground without raising money (working out of your home etc) that can be a better way to go - and you don't end up beholden to others.

If you do need to raise money, a gofundme campaign is going to be difficult because people are just donating to you, rather than getting anything back. One option would be to go to former clients who are likely to need work done in the future, let them know that you are setting out on your own and are reaching out to former clients to give them the opportunity to pre-pay (at a discount) for some amount of future services. If they liked you / your work they might be up for getting $100 work for $85 and you will have cash in the bank to get started.

There are other options out there for you, but getting your customers to fund your startup costs is my favorite for businesses like yours.

[rwoods]

Good points from AlexB1 there. Another thing you can do is to create an outline of the things you will be doing and needing money for. This way, those people you ask money from will be aware of where the money goes. If you are up to it, encourage them to invest the amount you need and provide gains in return.

[phanio]

I like what AlexB1 says - always start your business as lean as you can - spending money only on those things that get customers and their money - this will help you reduce the overall amount your need.
I am not sure why you don't continue doing what you are doing right now - working full-time and doing this part-time until you save enough money to go at your business full-time - might just be your best way.
If a business loan is out - what about a personal loan - 99% of all businesses are started using soem form of personal loan - i.e. personal credit cards, home equity, etc.
If you are serious, continue to work as you are and save the money you need knowing that what you are doing is only temporary until you can fully kick off your business.

[dianne]

Good advice from everybody so far! A loan isn't always necessary and starting a business debt free is possible. I've taken these points from an article i read recently on starting a business debt free:

You need to know — intimately — the true cost of delivering your service or product.
Become crystal clear as to where the money goes.
Develop and use an operating budget as a decision making tool.
Always know your financial condition and situation — know the numbers and operate your business with this knowledge in mind.
Consistently measure revenue, gross profit, and cash.

[LaneKreps]

There are different ways to raise a capital for your business.

1. First, your own financial saving
2. Money from friends, relatives, family members
3. Try for a bank loan
4. Private investors
5. Crowdfunding

[jaynorth]

Well if you have earned a good name for yourself then getting funded by your customer wouldn't be tough task. But you can always ask help from reliable financial institutes to help to start a business of your own through proper financing.

[MahaKarthi]

For queries about s tart up funding and prospective benefits, you have to seek the advice of the experts in this field. You can also send proposals to investors who may find your business appealing and wish to invest as well.

[HassleFree]

There are tons of alternative financing sources out there. Some are VERY expensive, some have bank-like rates and terms. With either, you really need to examine the return you'll make on the money... then compare it to the cost of money (the best deal you can get). I would never recommend borrowing unless your return on the funds are at least twice the cost of them.

Here is the information that can determine whether you can get a near-bank type commercial loan, or a C-Paper (the most expensive) commercial cash advance... and all points in between:

1) Do you have a business set up? E.g., DBA, Corporation, Bank Account, SOS Registration, etc.

2) How long have you been set up?

3) What type of revenues are you generating over time?