Starting any business can be exciting and rewarding, but like anything else worthwhile it comes with its own set of challenges. In particular the biggest challenge most people will face is funding, how to fund and finance your new idea, and to help, we look at some of the alternative ways that a new businesses can begin to operate.

Self financing

This is probably the most resorted to method of obtaining finance, but you must be honest with yourself and look at your living costs as well as the true cost of getting your business off the ground. One of the most popular ways is to get a home equity loan, but if you don’t yet own a home but you do have a car, then you could look at logbook loan companies like elogbookloan, a secured form of financing on your vehicle. You could also look at funding through credit cards, but this can involve higher interest charges.

Crowdfunding

Growing in popularity, crowdfunding is the means to raise the finance you need by raising money by a large number of people. With this type of funding, your business idea has the potential to be seen by thousands of people which could get you some free advertising. There are many online companies who will guide you through the offering, crowdfunding can be equity based or even reward based or even both, the choice is up to you.

Micro loans

Micro loans are usually given by non profit organizations, such as government bodies. Getting these types of loan can be labour and time intensive, as you will need to put forward a business and marketing plan. These types of loan are also for smaller amounts of money and are not suited for businesses looking for a large injection of money.

As with anything in finance, always do your due diligence in finding what is right for you.