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If you have little capital and a good project, do not despair, there are ways to get financing for your company, and in this article, we will explain how to finance your project. 

These are the five best way to get funding for a small business.

1. The different funding resources:

• Savings: An entrepreneur who needs money to invest must start by looking at their own personal resources. If you do not trust your idea, how will others trust you?
• Family, Friends, and Fools: those who know you better and someone very reliable can give you a good part of the money you need.
• Crowdfunding: The Internet allows you to finance your project thanks to a large number of small contributions on specific platforms.
• Bank credit: there is not much availability of credit, but banks continue to lend to promising projects. You can also count on ICO lines.
• Venture Capital: so-called Business Angels and Venture capital companies have been much less affected by the crisis than banks, are an excellent resource for reliable and very professional projects.

And do not forget that to ask them to invest in your project, it is essential to have a business plan ready.

2. Start when you already have a client:

Why put to spend money on rents, tools, salaries and services when you have not yet got a customer? If you had clear your project and prepared your business plan, you can go looking for clients before formally setting up the company. This way, you can use your first sales to take part in the initial investment.

3. Look for alternative solutions to the investment:

Renting can come out more expensive than buying, but it has a big advantage: you do not have to invest and do not need financing: you are paying month to month while using the object of the rent. If things go wrong, or if you no longer need this tool, stop borrowing it and stop having an expense.

What seems obvious for a local (few new businesses start spending $ 300,000 to buy a real estate asset), should also be considered for any investment of significant value (tools, technology, furniture, transport elements). Apparently, it must be ensured in each case that rent is a viable option, that prices are acceptable and contract duration commitments do not bind us for more than desirable.

Although we pay more than we would be paying off and paying interest, it has the immense advantage of allowing us to prove our concept. If it works, with proven results it will be much easier to get the financing that will enable us to buy and let the rentals.
Also read: Funding a Business: How to Get Startup Money

4. Charge everything in cash

Apparently, if we need funding for our project, leaving a payment deadline to our clients forces us to ask for more money to finance the others. That's not counting the risk of unpaid bills. That is why it is very advisable to work in cash, although in some sectors is not so easy. Remember that there is only one thing worse than not having a customer, and it is working and invoicing and then not charging.

5. Look for cheaper alternatives

At first, you are tempted to buy only new materials and tools, however, in many cases, there are second-hand equipment, much cheaper and can serve us correctly. For example, if we are going to build a restaurant, we may want to buy new furniture (tables, chairs, etc.), but inside the kitchen, we could install the equipment of another restaurant in good condition but second hand. In times of crisis and unfortunately with many bankruptcies in all sectors, there are opportunities to take advantage of.

We hope these tips will be useful to future entrepreneurs. 

Recommended reading list:

• 10 Financial Tips for Startup Entrepreneurs
• 5 Financial Mistakes Small Businesses Make
• 8 Steps To Getting A Business Loan For Startup
• How To Create a Business Plan in Just 2 Minutes
• How to Quit Your Job and Start Your Business in 90 Days
• Choosing the right place before financing your project

Fundraising events are a straightforward and fun way to get extra money. They are usually organized to raise funds for a certain cause or organization. There are many excellent ideas for fundraising, as well as more modern and innovative ideas. 

Get ideas for your next fundraiser from this top 10 list.

Sale of cakes

Pastry sales are one of the most popular ways to raise funds. Many people have wonderful memories of the sales of school cakes. Ask several people to donate a variety of baked goods, such as cakes and cookies, which will then be sold.

Raffles

Raffles are an effective way to raise money. You can raffle some small prizes or a huge one. No matter what you choose to raffle, make sure the prize is something people want and so be willing to buy a ticket for the raffle. Generally, the ticket winnings can cover the cost of the prize and leave money left over for the cause.

Competition

Organizing some type of game is a fun way to raise funds. Can be a contest of singing, dancing, beauty or any kind of game you like. Sells tickets to the audience and offers some type of prize to the winner of the competition.

Sale of parking space/garage

Making a garage sale can raise funds and help people decongest their lives and their homes. Encourage those involved in your organization to gather all the things they do not want or need (including clothing, household items, or toys) and organize a garage sale.

Handicraft Fair

If many talented people in your organization enjoy making crafts, host a craft fair to raise funds. If there are not enough people to make different crafts, limit it to something easier like home cards. Everyone can do it, and it will be easy to sell.

Carnival

Carnivals are an excellent source of fun and entertainment. Place a host of different activities that you would find at a fair and charge entrance. It offers baked goods, food and beverages for sale. This is a profitable way to raise money when you expect great assistance.

Car wash

A car wash is another excellent idea to raise funds. It is also very simple and requires no more than what the name implies. Provide plenty of soap and water, and offer quick self-washed people. If you can, provide extra services like vacuuming and waxing at a minimal additional cost.

Calendars

Calendars are relatively easy and inexpensive to do with modern computer technology. Use your organization, company, school or cause as a source of inspiration, and take a different photo for each month of the year. Sell the calendars at a reasonable price. Calendars are useful and are liked by many people.

Collecting Coins

Collecting coins asks people to donate the coins they have there. They can also give any change or lose money they may have. Coin collecting is a good way to raise funds because it does not make people feel that you are asking for much but gives them the freedom to give as much as they want.

Fundraising company

You might consider using the services of a fundraising company. Through a fundraising company, you could offer items such as magazines, cookie dough, candy and many other items available for purchase. Fundraising companies often provide incentives and rewards to top sellers.