Getting the capital you need to start a new business can be one of the biggest hurdles to overcome at the beginning of an entrepreneurial endeavor. Starting a business in Santa Monica can be challenging as well, especially if you need to find a location to operate. Finding the perfect spot for a restaurant or boutique can be challenging if you don’t know the local market well enough. Additionally, some lease agreements require quite a bit up front.
Funding an app or a software system may require hiring smart people to do the work for you, and you’ll need enough money to make it all happen. Thankfully, there are plenty of ways to fund your ideas, and if your business plan is solid, it’ll be even easier to get the capital you need to start a new business here in Santa Monica.
Crowdfund Your Seed Money
Do you have a following online? Why not crowdfund the money you need to bring your dream to life? Leverage Kickstarter or another crowdfunding platform to bring your dream to life. You’d be amazed at how many people want to help you succeed in your business if you put it out there to your loyal fans and followers. You’ll need a good crowdfunding marketing plan to ensure it’s successful, as well as some key people to help you promote it. Make sure you communicate your business in a way that people can understand and that you have the products all lined up with any mockups for people to see.
Ask Family and Friends to Invest
Some people have very generous family and friends who are willing to donate or invest in a solid business idea. You’ll need specific parameters for anyone who does invest to ensure they get their money back as the business starts to take off.
You can invite people to dinner, out for coffee, or for a chat to tell them about your business and present them with some opportunities to invest. Having everything laid out in a well-developed fashion will help your family and friends learn about what you want to do in Santa Monica and how their money will help you get everything off the ground. Giving them a sheet with detailed information and giving them time to consider the opportunity will help you keep your relationships intact and help you avoid looking like a sleazy salesman.
Apply for Bank Loans
Banks have money. In fact, they have a lot of money and for the right small businesses, they are often willing to give out money to help you get your idea off the ground. You’ll need a good business plan and a lot of guts to walk into a bank and ask for a small business loan. Your tenacity and preparation will pay off eventually though. Some banks will offer smaller loans, and then you’ll need to fund the rest using investors and other seed money. Others will offer you nothing and you’ll walk away empty-handed. The key is to be willing to try.
Leverage the Equity in Your Home
If you own your own home and you have equity, the good news is that there are plenty of options to get the equity out of your house to start your small business. Home equity loans often require good credit and can be harder for people with non-traditional income to get. The good news is that there are other companies that can help in these situations. EasyKnock reviews show that Easyknock is one way to do it. People who have used their services have been able to leverage the equity in their homes to start a small business, pay off bills, and so much more. Some people even use their basement as a rental unit to make extra to fund their business endeavors. Or you can leverage the equity in their second home and also rent it out to earn more money to do business.
Host a Fundraising Event
People love to go to parties. Connect with local businesses to host a fundraising dinner or other event. If your new business idea is in a particular industry, you can partner up with other businesses in the same industry that provides services that complement yours. For instance, if you’re planning to open a photography studio, inviting florists, planners, caterers, and other wedding and photo-related vendors to participate in your event can be beneficial to all.