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With entrepreneurial spirits flaring far and wide, there has never been a better time to make the most of your spare time and skills with a side hustle.
Beyond just the personal, professional, and financial fulfillment, a side hustle is essentially a canvas for your creative and personal expression. With that said, however, taking the leap from a brilliant idea to a profitable venture is no easy task, with plenty of roadblocks along the way.
The first of many such roadblocks, and one where most such dreams are crushed, is financing. In this article, we take a deep dive into the various quick funding sources available for budding entrepreneurs, and what each of them entail while getting your side hustle off the ground.
While certainly not new, crowdfunding is certainly the newest among the funding sources on this list, and has gained enormous traction in recent years.
The core concept of crowdfunding is having your innovation or concept showcased in front of millions of investors across the globe, who will then contribute small amounts of money, which quickly adds up.
Platforms such as Kickstarter and Indiegogo helped popularize this concept, and what truly makes them impressive is the fact that such campaigns go beyond just raising money, to even helping build an engaging community to rally behind your product, service or side hustle.
Take ‘EcoStraw’, for example. They didn’t just crowdfund, they created a movement. Their campaign for biodegradable straws wasn’t just about raising cash, it was about rallying a community of eco-warriors.
Before they even launched, they had a legion of supporters, ready and eager for their product. That’s the power of a well-executed crowdfunding campaign.
In the digital age, crowdfunding has emerged as a dynamic funding avenue. Platforms like Kickstarter and Indiegogo allow entrepreneurs to present their ideas to the world, garnering financial support from a wide audience. This method not only raises funds but also tests market interest.
To succeed in crowdfunding, your campaign must be compelling. Create a narrative around your side hustle that resonates with potential backers. Offer attractive rewards and maintain transparent communication with your supporters.
Consider the case of ‘EcoStraw’, a venture that developed biodegradable straws. Through a well-crafted crowdfunding campaign, they not only raised sufficient funds but also built a community of environmentally-conscious customers even before the product launch.
Conventional loans are often untenable for small businesses, largely owing to excessive interest rates and unfavorable terms, making customized small business loans and microloans a beacon of hope for budding entrepreneurs.
Given the challenges that most small businesses face in their early days, such business-friendly programs with gentler interest rates stand to add a lot of value, giving hustlers and entrepreneurs much needed breathing space to gain ground.
If you’re worried about your credit score, platforms such as BadCredit not only throw you a lifeline, but guide you through the choppy waters by comparing loans, helping you choose the right one.
For side hustles with strong growth potential, angel investors and venture capitalists are often moths to a flame.
For a small equity stake in your company, you can raise a significant amount of money that you need to get your business off the ground. While this means giving up some control, such investments often come with substantial mentoring and advisory services.
The problem with this source, however, is that most VCs and angel investors only consider companies with significant upside potential, which most side hustles don’t qualify for. Additionally, entrepreneurs will have to agree to certain terms and conditions that may not always have their best interests.
A side hustle is a great way to dabble in entrepreneurship, and could very well be the launchpad for something big. While it doesn’t always require massive capital, it does, however, require some capital, which for many people is hard to come by.
With a robust plan and a commitment to executing it, however, a number of avenues open up for quick funding. In this article, we covered a handful of sources that are the most popular today, but for those who are truly committed, there are plenty more to try out.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.