Don’t let money stop you from starting a side hustle! If you’re sure about your idea’s success, you can borrow some money from family or the bank. While it might feel like a bold step at first, it is also a step towards leaving your full-time job. But sometimes, even that’s not possible. There’s no right away to get financing and you do what’s within your reach.
Here are 9 unique financing strategies for your side hustle:
1. Barter and Trade Services
Exchange your skills or products for the services you need. For example, if you’re a graphic designer, offer design services in exchange for legal or accounting assistance. You are paying with time and skills, which helps you keep savings intact.
2. Pre-Sell Products or Services
Platforms like Kickstarter work amazingly for pre-selling your product or service before it’s fully developed. It not only generates upfront capital but also validates the market interest of your business idea. You can also do this through your own website and with the help of social media channels and paid advertising.
3. Collaborative Financing
Partner with another entrepreneur to share resources and costs. By collaborating, you can split expenses for marketing, office space, or equipment. You can also find a friend in them and journey through side hustles and businesses with each other’s support.
4. Rent Instead of Buy
Opt for renting equipment or office space instead of purchasing it outright. Co-working spaces start for just $80/month and they also have free coffee! Reduce upfront costs and give yourself more cash to experiment. You can also rent out everything from office furniture to high-tech equipment on a short-term basis.
5. Host Fundraising Events
Organize events such as workshops, seminars, or social gatherings to raise funds. Charge an entry fee or offer special products or services during the event. It has two benefits – promotion for your side hustle and reaching different kinds of audience at once.
6. Offer Equity to Suppliers
If your startup has high costs for inventory or materials, offer a stake in your company in exchange for goods or services from suppliers. It is bigger suppliers that are more willing but be cautious about the terms they set up.
7. Utilize Community Development Financial Institutions (CDFIs)
CDFIs provide financial services to underserved markets in forms of loans and investments that are tailored to the needs of small businesses and startups. These are great when traditional banks might not be an option.
8. Participate in Pitch Competitions
Enter pitch competitions to win funding and gain exposure. Many organizations, universities, and government organizations host these events, offering cash prizes and investment opportunities. They give some rules but most pitches are about presentation skills and business plans.
9. Seek Local Investment Groups
Look for local investment groups or angel networks interested in supporting small businesses in your area. These groups often prefer to invest locally to stimulate the community’s economy. You can also find a lot of Facebook groups that are focused around it. Along with funds, they also provide mentorship and support.
Strong business plan, a compelling pitch, and a clear presentation are your biggest tools when finding funding. For more side hustle advice and tips, follow Carrie’s Courses.
