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5 Tips for Funding Your Side Hustle as A Parent

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Are you wondering how you can fund your new venture – here are some great tips to help you do so. 

1. Self Funding

This is one of the most common forms of funding for startups. A lot of entrepreneurs use this method in the early stages to get the funding they need. They do this by putting their own money into their venture. A lot of professional investors call it “having some skin in the game.”

One thing funding your venture with your own money does give you a lot more credibility. After all, if you are “putting your money where your mouth is,” it’s very likely you will be taking the business seriously. Thus, many future investors will see this and have much more trust that you will stick with it. While you certainly need to have either liquid assets or savings to do this, it goes a long way towards showing the faith you have in your idea. After all, you are willing to put your own money at risk with it.

This is another great way to ensure you can maintain as much control as possible over your venture. When you seek outside investment, you will have to give up some control over your company. You will be giving away equity, which can take away from the control you have over the business.

2. Crowdfunding

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This is another good way to consider funding a startup. This is a good option for raising money for creative projects that people would want to back. Also, it could be a good option to get pre-funding for larger-scale manufacturing projects. Getting the funding, you need beforehand could help you secure better contracts and deals with the manufacturer due to economies of scale. There are various types of crowdfunding that you can choose from. Therefore, you would need to figure out which one suits your business model the best. For instance, there is equity-based crowdfunding, and there is a rewards-based crowdfunding. While there is no better or worse option, they could suit different business models accordingly. This makes it a good option for those looking for a much lower risk than putting their own money into the venture. Essentially, people are paying to be early adopters for your new product or service. You provide them with the end-result, typically for a reduced price or some other type of incentive. They will provide you with valuable feedback that you can use to refine your processes and enhance your product for mass-market conditions. 

Another good thing that crowdfunding can do would be giving you the ability to show the marketplace adoption to any future investors. When those looking to invest in your venture see that others are willing to put their money on the line for your idea, they will be much more enthusiastic about putting their own money into the equation. Lastly, when you are talking about rewards-based crowdfunding, you can help ensure that you can maintain full artistic and creative control over your product. This makes it the ideal option for artists and other companies who would otherwise have to worry about losing this control or being censored.

3. Angel Investing

This is another option that you are going to want to consider. This is the type of investing that was made popular by the hit show “Shark Tank.” That being said, it’s been one of the more popular ways to secure funding for years. With this type of funding, not only do you get the finances you need to ensure that you can grow and scale your business, but you will also be able to leverage the experience of the investors through their mentoring. Thus, it could be a good option for those looking for a mix of both. A lot of angel investors would be willing and able to invest anywhere up to 1 million. You could even find multiple angles getting into the same venture during a funding round.

To reach prospective investors, you may want to start networking. That way, you can identify the right people and get the best opportunities. You can do this through social media, by asking around, making guest posts, posting on forums, and more. The more people you talk to about your venture, the more likely you can reach the right people. 

While seeking out an angel investor may be a good option early on, it isn’t ideal for everyone. After all, angels are likely going to want a positive and early return on their investment. Because of this, they are likely going to require you to give up more control over your business, and it might not be something you want to part with.

If you decide to go with an angel investor, you will want to find someone who has had success in the field you are in. That way, at least you can get someone who has direct experience growing the same kind of business you are in.

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5. Getting a Loan

This is another option that you could consider if you want to get your business funded. This could be an option for someone who has established credit. You can get the loan through a bank or even through peer to peer services. Try Loanza’s £50 loans if you’re looking for a quick injection of funding. 

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