Fresh out of college? Want to start building your wealth as early as possible? Indeed, what better time to start than now! Given the plethora of technologies that allow us to grow our networks, it has become easier, especially for young people, to establish a firm foothold in the world of business.
Still, despite these apps and technology, it still remains a considerable challenge for young adults to raise the capital they need to start a business. And given the fact that setting up a business can be costly, gathering as many resources as possible becomes even more daunting.
A little knowledge goes a long way and young entrepreneurs can make use of certain approaches that enable them to fund their very own startup. So, even if you have a small amount of cash in the bank, you can still use these strategies to get things rolling.
- Getting other people’s money
In the world of investing, other people’s money or OPM is a great option for you to start a business with only minimal resources in your personal account. There are several ways you can do this. For one, you can pool funds from friends and family members. You just have to pitch your idea for a business and hopefully they can commit some of what they have to form the capital you need. You might also convince some of your partners to contribute a portion of their retirement funds, so long as there is a guaranteed equity return in the long run.
- Use crowdfunding platforms
Are you developing a mobile app that helps college students stay productive? Perhaps a video game series for horror fans? Whatever idea you have in mind, you might as well pitch them to people who are interested to see such an idea become real. There are numerous platforms you can use to raise the resources you need, such as GoFundMe. You only have to set your goals and present your idea for a product or service in the most creative and compelling way possible. That way, people will be more than willing to share what they have with you. Just make sure to give something in return as your business grows!
- Get loans without the need for credit
Young as you are, you will have to make do with a nonexistent credit record. For sure, this is the number one encumbrance you will have to face when applying for loans. Most banks will require your credit record to determine if you qualify for a loan, but considering that you don’t have one, you might as well access loans that don’t have such restrictions in place. Sure enough, you can always use your car title as collateral to access easy money even if you don’t have a credit record to show. You just have to search for loan providers offering car title loans with no credit check.
For sure, creating a business startup is part of the so-called millennial dream. The challenges of financing, however, remain. As economies remain volatile, it’s important for young entrepreneurs to be creative and persistent in achieving their goals, regardless of how much money they have in the bank.
