Contrary to popular opinion, you don’t need to be an adult to start becoming a businessman. Young people can make good entrepreneurs. You have a strong drive and often come up with revolutionary ideas. The only problem with starting your own business is that you have limited source of income. Part-time jobs can hardly pay for a good startup. However, that does not mean that you are not capable of raising enough money. As a matter of fact, you have several options.
Get a Loan
Banks and creditors are not in the business to be charitable. They give a loan to those they deem can actually pay back. If you are not yet working for a regular job, your chance of getting your loan approved is low. So, how do you convince them to give you money?
You can get a cosigner. It can be your parent, mentor, business partner, or friend. Your cosigner has to agree to make payments on the loan in the case that you stop paying. Your cosigner needs to have a good credit score.
You can get car title loans. Banks and creditors are more at ease when they have a collateral. A collateral is an asset which they can seize if you fail to pay your debt.
You can apply for the first-time buyer (FTB) program. Make a deposit in your chosen bank. Then, your chance of getting a loan is higher. Of course, the bank will have to review your application.
Raise Funds Online
Raising funds is easier online. You can go to GoFundMe or Indiegogo. For this to work out, you have to convince people that your business idea is good. You also have to promote it on your social media accounts. The more people know about your initiative, the higher your chance of getting sponsors.
The only danger about this is that you expose your business idea to the public. Other people can easily use it themselves.
Sell Personal Assets
If you can let go of your assets like your car, computer, TV, etc., then you can sell them, and you’ll have instant money. This is perhaps the fastest way to raise funds for your business. However, if you are selling real estate, you might be subject to tax and lose more than you gain. It’s good if you can discuss your plan to sell your assets with a lawyer or an accountant.
Borrow From Relatives and Friends
Relatives and friends are easier to convince than banks and creditors. They don’t ask for your credit score and set a collateral. Because of this, borrowing from a relative or friend is one of the most popular options of raising money for business.
Needless to say, this option comes with its own risks. If your business fails and you can’t pay your debt, you will end up straining your relationship. A misunderstanding over money can complicate and even destroy your connection with your relative or friend.
To the willing and the determined, there will always be a way to raise money. Don’t let your financial situation get in the way of starting your own business.