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15 Ways to Raise Money to Start Your Business


At one time, I ate so much experience that I “boiled" to share with all interested people all the accumulated experience, conclusions and insights. Developing different businesses and working with different businessmen, I tried to find out from everyone how they solved the issue of finding and raising finance to start their business. We all understand that in order to start a business you need money. While there are so many types of businesses that you can start from scratch with no cash investment, extra cash never hurts. This includes not only the costs of the business itself, but also the costs of the office, telephone, Internet, travel, food and accommodation for the period when the business is just starting up. As a result, it turned out to collect the TOP 15 possible options for sources of money to start your own business. In this article, we have broken them down into pros and cons,

1 Own savings

15 Ways to Raise Money to Start Your Business

The easiest and first way that comes to mind. With the right financial distribution, you need to take all the will into a fist and, regardless of the amount of income, regularly set aside from 10 to 20% of income to a savings account.


– you won’t owe money to anyone

– no need to show a presentation, a business plan to anyone and climb out of your skin to get money

– you don’t pay interest


– in most cases, you will not save a large amount if your income is not as large as you would like.

– you risk burning out with your own money

– a long period of accumulation, most often, if you have an average income, then you will have to wait a long time to collect a tidy sum

– You need discipline to regularly set aside the planned amount.

2 Bank loan

Credit is a very good tool if you know how to use it profitably. Yes, there are certain difficulties in obtaining it, yes there are requirements, yes there is an overpayment, but if there are no other more profitable options, then this is a great tool if you need money. An overpayment of 10-20% is not so terrible, if you multiply this amount at least 2 times in a year, then this tool will already pay off, and someone will pay off more than 2 times, so you don’t need to be afraid of them, but you need to use wisely.

15 Ways to Raise Money to Start Your Business


– Quick turnaround time with a good credit history, you can get the full amount in 1 day

– There is a motivation to recapture the money or collectors will overtake you) – You can get more money, unlike savings

– You risk not your own money, in principle, if you think about it, this is also a small plus.


– You overpay for bank services interest (overpayment)

– There is a risk and responsibility for the return

– bail, collectors, court, debt.

3 Borrow from loved ones

A very popular and profitable topic, since this method does not require a good credit history and level of earnings, no interest, most often) But there is one big risk, if payments are delayed, you can lose friends or relatives, as they are sensitive and emotional people and can have a lot of hopes about the return of money on time. Therefore, play it safe, warn your loved ones about these risks in advance so that they know what to expect, and best of all, your lenders will not have financial problems from delays in this amount.


– no credit history needed, just the right level of trust

– there is no threat of court or collectors, unless they are hired)

– no interest on return

– you risk not your own money – you can return the money for a long time upon agreement


– spoiled relations with relatives, friends, if you take a long time to return the money or do not give back at all

– it is not always possible to collect the required amount

4 Finding an investor or business angel

Glory to the creator of capitalism, for inventing such people) whose main business is to invest their money in other people’s startups and existing businesses. Well, business angels, everything is said here by this name of such people, the main thing is to hook them.


– This is an opportunity to quickly receive the required amount, in some cases free of charge, i.e. without interest (talking about business angels).

– You can get a large amount

– You can attract more than one investor or business angel – You risk not your own money

15 Ways to Raise Money to Start Your Business


– You need to make a convincing presentation or business plan, although it’s worth it.

– It’s hard to find an investor or business angel, especially if you don’t “circle in such circles”

– Investors "come into the share" of your company, otherwise what’s the point

5 Looking for a partner

One option is to find a partner. There are pros and cons. The main thing is to find the right trusted person who you can rely on, and it will be a plus if he has either money or connections or "golden hands" so that he "closes" on himself some issue that is necessary for your business. Profit will have to be divided, but if a person is worthy and brings profit or investment, then why not, the main thing is that the interests of both parties are satisfied, therefore, all points must be agreed “on the shore” before sailing) to complete all the formalities before the start, no matter what You weren’t close. But as practice shows, partnership does not destroy business in 25-35% of cases.

15 Ways to Raise Money to Start Your Business


– You get an assistant and an investor in one person

– You risk not your own money – You can not return the money if the business went bankrupt, and you agreed that the investments and risks for them are partially on the partner.

– The ability to quickly get the right amount


– It is difficult to find a good partner with money

– It is difficult to find just a good person with whom you will develop the business “hand in hand”.

– Make a persuasive presentation

– Will have to share further profits from the business with a partner

6 Starting an adjacent business that does not require large investments

There are many types of businesses that do not require investments or require very small ones. This can serve as a good school for creating and growing a business before a big launch. You will be able to receive regular profits and save or invest in a new larger business. Network marketing, affiliate programs, resale of popular products, mediation in various fields, etc.

15 Ways to Raise Money to Start Your Business


– The ability to receive money with minimal risk, without getting into debt, without depending on anyone

– Small starting captal

– Regular income


– Long-term accumulation is possible

– You can burn out and not earn anything

7 Start a business with minimal volumes

You do not always need a large amount to start, there are niches where you can start the first sales without large investments, purchase a small batch of goods, or provide a small amount of services while there are not a large number of specialists. This option is also good, if only because most often in this case the development of the company will go exponentially or if the business “burns out”, you will not incur big losses.


– Small start-up capital

– No need to go into debt in most cases

– A good alternative to “test the waters” before entering a higher level

– Little chance of going bust as business growth is likely to be exponential


– Long-term exit to large incomes, most often.

– In the first months, most often small incomes, which do not always provide the required rate

– At first, you will have to work alone or with close people who are ready to start together for a “penny”.

8 State subsidies

At the moment, there are three known subsidy programs:

– allowance from the employment center to start your own business

– grants from departments and funds to support small and medium-sized businesses

– a subsidy for the improvement of territories from district administrations to fulfill the state order.
Judging by my experience, in order to receive a grant, it is necessary to go through several stages of competitive selection, then after passing, it is most often necessary to report documented expenses. Subsidies will also have to be accounted for and there are certain requirements for business. All this is a pretty good tool, again, it has its limitations, but most often it is good support from the state, which will not cover all expenses and will not give a “great start”, but it’s still better than nothing, and sometimes very good help. Use this wisely!


– You are not risking your own money

– You can not return the money


– It is not always possible to get the required amount

– Difficulty in obtaining subsidies

– Need a compelling presentation and target business development area most often

– Reporting on subsidy spending

9 Crowdfunding

Crowdfunding is the collection of money to start a business from ordinary people in any amount, including the smallest, at least from 100 conventional units. The collection is carried out through special crowdfunding platforms, which, as a rule, are sites where anyone can put up their offer to raise money and anyone can invest their money in it. You sell your future products by pre-order. If you collect the required amount, then it’s great, and you will have to give part of the money in the form of a commission to the site, but if you collect less than 70-75% of the required amount for a certain period, the fundraising project will be declared not implemented and you will not have to pay a commission. In general, it makes sense to try them if you have a project that is most likely to be supported by the masses of people – a film by a famous or from a famous director, an album by famous musicians, super useful product or service for the population, etc. They are not designed for a narrow segment of the audience.

15 Ways to Raise Money to Start Your Business


– You don’t need to return the money, but in fact this is a pre-order of your product / service most often

– You risk not your own money – you can collect not a small amount


– It’s difficult to raise the required amount if you don’t have a super cool innovation or a very popular service / product

– Long-term collection of the amount, more often it is from several months to 1-2 years

– We need a presentation and design of a whole questionnaire from a bunch of questions

– You may not get any money at all, it happens most often

– must give a percentage of the site itself, on which you will be placed

10 Collecting money through electronic payment systems and cryptocurrencies.

A rather non-standard way and is suitable only for people familiar with these systems. An analogue of crowdfunding only for a startup integrating into these specific systems is not suitable for everyone, but it is also the way some startups raise millions.

15 Ways to Raise Money to Start Your Business


– no refund required

– you risk not your own money


– Difficulty getting the right amount

– long-term

– need a presentation and description

– you may not get any money at all

11 Alternative money

To start a business, you do not always need only money, there are situations in which you need equipment, an office, a workshop, employees, goods, or something like that to get the first sales. You can get all this from different channels in different ways. These options include: the company moves or goes bankrupt, which sells for a penny or even gives away its furniture or equipment for free, old but working. You can agree on a purchase in installments or with a deferred payment. To rent an office without paying for the first time of work, at one time they came up with “rental holidays”, which make it possible to start paying rent in 1-3 months, sometimes even more after you moved in. If you search, you can find many ways, there are more options, I will analyze all of them and in more detail in another article, so that it is clearer to you how to use them.

Pros :

– you can save a lot of money

– do not risk your money

– a great way to start without money

Cons :

– not suitable for every business

– it is not always possible to save a large amount

– not easy to find

– quality may suffer

12 Easy Money:

This option includes many ways in which, with easy work and almost no effort, you can quickly get a small amount if you do not have a treasure 🙂

Donating blood, metal, glass containers, donating jewelry or equipment to a pawnshop, etc. Why is it here? Damn, aren’t these ways? )

Pros :

– receiving money without special physical and mental costs

– fast turnaround time

Cons :

– it is difficult to collect a large amount quickly

– in some cases, you can go negative

– pity things or blood

13 Sale of property.

One of the easiest and not confusing ways, in terms of speed and brain activity in the search for the question of where to find money. However, morally, it is one of the most difficult, because usually if you have an apartment or a car, then you don’t really want to part with them) But it all depends on the adequacy of this “exchange” of property for business, if your business will bring or bring you will get 2-100 times more money in a fairly short period than this property is worth, and at the same time you won’t be left without pants and walls if you don’t have big problems and if you are mentally prepared, then go ahead) Risk is the middle name of business) But risk for the benefit of greater profit. For example, I sold a car to start, although I could take a loan or a loan, but as a “proud bird” I did not turn to anyone,

Pros :

– Getting money without much physical and mental cost

– Relatively fast turnaround time

– Opportunity to raise a large amount

Cons :

– Possible disapproval from friends and relatives

– You sell “your own” and risk “your own”

– It’s a pity

14 Crazy Ways

The most "torn off" ways that only "risky" people are capable of. These are casinos, lotteries, sports betting and other similar methods. Where there is a high probability of losing and a small probability of winning. But sometimes there are lucky ones who got lucky and they "hit the jackpot" or there are very experienced people in these matters who have already "hacked" the system code and know how to win in such things.

Pros :

– receiving money most often without much difficulty

– fast turnaround time compared to other methods

– you can "raise" a large amount

Cons :

– little chance of winning

– in some cases, you can go negative

– you need to have “recklessness” or be very knowledgeable in sports predictions

15 Investment

This method is for the most experienced, ie. knowledgeable people in these areas who know where to invest in order not to miscalculate and get a good profit. Without knowledge in these areas, there is a high probability of burnout, "do not use without a doctor’s recommendation!". On the other hand, there are also the least risky ways, this is a savings deposit or investment in mutual funds through accredited, long-known and reputable banks, but the accumulation period in them will be long, depending on the amount of the deposit and the amount required for business. This includes a savings account, buying a currency (fiat, crypto), playing on the stock exchange, investing in mutual funds, investing in businesses, etc.


– Passive income without special physical and mental costs

– In some places there is a guarantee for a full or partial return on investment


– Most often it is difficult to raise a large amount quickly

– Long accumulation period

– Possibility of burning out without knowledge

Post source: zen.yandex.ru

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