[Part 4] How to fund your new business (3 of 3)

      Part 3 in our guide to learn the best ways to finance your dream. Part 3 in our guide to learn the best ways to finance your dream.     Hi  Yesterday we looked at a few ways to fund your new business and if those options don't feel quite right for you, then today we offer you a few more. Today we cover crowdfunding, microloans, selling a proof of concept and much more. Hi  Yesterday we looked at a few ways to fund your new business and if those options don't feel quite right for you, then today we offer you a few more. Today we cover crowdfunding, microloans, selling a proof of concept and much more. Crowdfund your idea Crowdfunding is raising funds from a large group of people, usually using an online platform. It relies on securing small amounts from a large number of individuals.  Turn to friends and family [Pitch your vision to people you already know to raise capital for your business. You can offer them an equity stake in return for their investment.](  Draw on your retirement If you're in the US, you can actually use your 401(k) to start a business. There are several ways to do this, but the best fit for startups is known as ROBS, or Rollover for Business Startups. This allows you to draw out your 401(k) or IRA funds to finance your business venture.  PayPal PayPal Working Capital is a program that allows PayPal merchants to get a cash advance based on their total sales. It's interest-free, but does come with a one-time fee. Crowdfund your idea Crowdfunding is raising funds from a large group of people, usually using an online platform. It relies on securing small amounts from a large number of individuals.  Turn to friends and family [Pitch your vision to people you already know to raise capital for your business. You can offer them an equity stake in return for their investment.](  Draw on your retirement If you're in the US, you can actually use your 401(k) to start a business. There are several ways to do this, but the best fit for startups is known as ROBS, or Rollover for Business Startups. This allows you to draw out your 401(k) or IRA funds to finance your business venture.  PayPal PayPal Working Capital is a program that allows PayPal merchants to get a cash advance based on their total sales. It's interest-free, but does come with a one-time fee. Why small U.S. businesses didn't receive funding Why small U.S. businesses didn't receive funding Microloans Microloans are small amount loans specifically for small businesses. While microloans started as a way to encourage entrepreneurship in impoverished countries, they're now available to a wide range of entrepreneurs who need smaller amounts of capital.  Inventory and invoice finance This is a type of finance, also called asset finance, that uses sales or stock to secure funding. Inventory financing uses physical inventory as collateral to establish a revolving line of credit. You can draw on this line of credit as needed, and you're only charged interest on the amount you use.  Pre-sell a proof of concept If you're offering a product, particularly a software product, you can raise money through pre-sales. Then you can use this money to develop the product for wide release. This differs from crowdfunding because you're offering a one-to-one exchange of goods instead of allowing people to contribute the amount they want, and you're not required to hit a specific funding goal before receiving funds.  Keep it low cost OK, we're admittedly a bit biased, but this is our favorite option. [You can keep your startup costs to an absolute minimum by identifying needs that you can fulfill using freelancers.]( And by absolute minimum, we mean less than $1,000 USD.  Conclusion Once you've got your funding, it's time to launch your business in earnest.  Next time we examine which structure best suites your new business; sole proprietorship, partnership, LLC or corporation. Picking the right one could save you at tax time! Microloans Microloans are small amount loans specifically for small businesses. While microloans started as a way to encourage entrepreneurship in impoverished countries, they're now available to a wide range of entrepreneurs who need smaller amounts of capital.  Inventory and invoice finance This is a type of finance, also called asset finance, that uses sales or stock to secure funding. Inventory financing uses physical inventory as collateral to establish a revolving line of credit. You can draw on this line of credit as needed, and you're only charged interest on the amount you use.  Pre-sell a proof of concept If you're offering a product, particularly a software product, you can raise money through pre-sales. Then you can use this money to develop the product for wide release. This differs from crowdfunding because you're offering a one-to-one exchange of goods instead of allowing people to contribute the amount they want, and you're not required to hit a specific funding goal before receiving funds.  Keep it low cost OK, we're admittedly a bit biased, but this is our favorite option. [You can keep your startup costs to an absolute minimum by identifying needs that you can fulfill using freelancers.]( And by absolute minimum, we mean less than $1,000 USD.  Conclusion Once you've got your funding, it's time to launch your business in earnest.  Next time we examine which structure best suites your new business; sole proprietorship, partnership, LLC or corporation. Picking the right one could save you at tax time!     Do you need help financing your business? Then hire a financial advisor for some expert advice.     Do you need help financing your business? Then hire a financial advisor for some expert advice.   [Hire a Financial Advisor]( Freelancer is not responsible for financial advice provided by the independent third parties found through its website. Freelancer makes no endorsement or warranty concerning the suitability, accuracy or timeliness of financial advice provided by such independent third parties.   [Facebook]( [Twitter]( [Instagram]( [YouTube]( [apple store]( [google play]( [Facebook]( [Twitter]( [Instagram]( [YouTube]( [apple store]( [google play]( © 2022 Freelancer Technology Pty Limited. All Rights Reserved. Level 37, Grosvenor Place, 225 George Street, Sydney, NSW 2000, Australia [Privacy Policy]( | [Terms and Conditions]( | [Unsubscribe]( | [Get Support]( © 2022 Freelancer Technology Pty Limited. All Rights Reserved. Level 37, Grosvenor Place, 225 George Street, Sydney, NSW 2000, Australia [Privacy Policy]( | [Terms and Conditions]( | [Unsubscribe]( | [Get Support](