Creating and running a successful start-up requires imagination, a realistic business plan, a great product, and… almost always a substantial initial investment. The problem is that many of us don’t have that money lying around, so where can we get it?
Below we outline some great ways to build your start-up capital – some tried and tested, some new and exciting.
1. Investing in NFT Art
Let’s start with one of the breakout stars of investments. NFT (non-fungible tokens) are as exciting as investment prospects as they are poorly understood by most media commentators.
The commotion around NFTs overshadows the fact that independent creators such as the Lost Socks NFT project are creating investment opportunities that could easily yield the kind of funding you need for your start-up, and much quicker than using traditional investment methods.
Investing in a high-quality NFT project today could provide you with enough resources for your launch after just a few years, and give you time to streamline your business plan and fine-tune your product.
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2. Seeking Out Unlikely Investors
A bank loan is perhaps the most traditional way a new business gets itself off the ground. Bank loans can be a good idea – no denying that. However, networking can provide you with contacts who could offer you much better investment rates than a bank and significantly more start-up capital.
Some say there’s no room for sentimentality in business. Others say it’s not what you know, it’s who you know. Both are true to a degree, but building good relationships with people who might be able to help you out (and vice versa) is undeniably good business sense. You’re not looking for lifelines; you’re looking to build productive partnerships. Nothing sentimental about it: networking works.
3. Day Trading
The types of skills needed to become a successful day trader aren’t so far from the skills you need to run a business successfully. Learning not just to trust your instincts, but to inform your instincts and learn from your errors. Of course, day trading is also a great way to earn a bit of extra cash while you plan your start-up.
The more you work with finances and investments, the better placed you are to make a pitch to other potential investors. You’re able to explain risk more effectively and mitigate investor concerns. Consider earning money a learning experience.
4. Create the Brand Before the Product
If you know you’ll have to wait for increased funding before launching your start-up, that doesn’t mean you have to sit around quietly. Building a likable personal brand by launching a YouTube channel or running a blog on a specialist subject gives you an immediate audience when it’s time to launch. It’s also a great way to attract investors, even if they’re small-scale supporters on platforms like Patreon.
Investors want to know who will buy your product and how they’ll see it. Being able to show them an audience that already knows and trusts you is a great argument in your favor.
5. The Old-Fashioned Way
Getting creative with funding opportunities is a wonderful idea. However, it’s prudent to have a fallback plan. That can include the most traditional ways to build funding for your start-up: work a day job, save up slowly, and apply for a bank loan when you’re ready. Nothing wrong with that at all, but never stop searching for new means and opportunities!
Building Success That Lasts
Good investments require wisdom and imagination in equal measure. It’s important to escape from a limited way of thinking and consider opportunities like NFTs, but just as vital to put contingency measures in place and ensure that whatever happens, you end up with the funding you need for your start-up.