In recent times, there has been a growing interest in entrepreneurship. Starting your business or side hustle can be a thrilling and sometimes challenging experience. The most common challenge for many entrepreneurs is finding start-up capital. Here’re seven ways to fund a side hustle.
1. Self-funding
The most common source of small business funding is through your own funds. Before you can get started with your entrepreneurial journey, it’s a good idea to build up your savings using your previous salary. If you’re still working as you set up your business, it will involve investing a portion of your earnings.
2. Equity Funding
This is where a person invests in a company, and they get a share of that business. Once the company starts making a profit, the investor will be entitled to a portion of the profit proportional to their share of the business.
If you need a small capital to start your business, you can consider asking your family and friends to invest in the company by selling them the business idea.
3. Business Grants
You can get a grant, but this depends on your business model. This is common with small businesses, and it’s a great option because you don’t have to pay back the amount. It also comes with mentoring and other tools to help your business succeed.
You should research and find more information about grants available where you are, and what requirements you have to meet.
4. Small Business Loans
If you’re able to pay back the interest and you have good credit, then you can consider going for a business loan to fund your new business. Take a look at easy payday loans UK with instant decision.
There’re some loans that are backed by the government offered to entrepreneurs. These loans come with low-interest rates. There are also many companies offering small business loans, including money for growth and development purposes.
One benefit of using this method is you don’t have to give out a share of your business to anyone.
5. Moonlighting
Moonlighting is a term used in business to describe when someone is working on another job alongside their own company. This is a good option for those who want to have financial security because they have other expenses like a mortgage.
You can keep working for your old employer on a part-time basis. You can also work on freelance platforms like Upwork and Fiverr.
6. Starting a Crowdfunding Campaign
This is a form of equity investment where lots of different people (usually strangers) contribute small amounts, and their collective investment adds up to the required amount.
The expectations of those contributing vary, which is why it is a good idea to have a look at what other companies are offering on Crowdcube and Funding Circle before you pitch your idea.
7. Home Equity Loans
If you have a home or property, you can leverage that asset and get a home equity loan. This is going to release some of the value.
It comes with a big risk because your property will be on the line if you end up defaulting on your loan repayment. It’s the perfect option if you’re confident the business is going to succeed.
This is a sure way to raise a large amount of capital to fund your business. Visit different lenders and see the terms they offer for home equity loans.
Starting a side hustle involves planning and funding. With these tips on the ways to fund your side hustle, you can begin your pursuit of multiple streams of income. Considering a family business as your side hustle? Click here to get ideas on the best family business ideas.
