Creative Ways Of Raising Money

1. It's not about the money!

Too many people say they can't afford.....often though this is not about the money but about fear and lack of belief in yourself to invest in your future. It doesn't take thousands to create powerful promotional and marketing techniques, save a little on the not needed's in your business and personal life, sell the things you have at home you dont need or use and stop wasting on unecessary purchases to do this. Look hard at what you can do without and re-distribute funds in your life.

Thanks to: Carol Dodsley of Choose Changes.

2. How to raise $500 quickly!

There have been many times I have had to generate fast cash to make payroll or just to pay bills. By fast, I mean one to five days. Package a product or service and create an irresistible offer, at an irresistible price for a limited period of time. The ability to sell these irresistible offers to your best customers is based on relationships. A trusting relationship with customers is the biggest asset you can have when tying to generate fast cash.

Thanks to: Traci Bisson of The Mom Entrepreneur.

3. $10 a week to Big Business

I am a serial entrepreneur who has created and sold over a dozen companies in my lifetime. The way I got capital in my early days for these endeavors was by saving $10 a week in my "Build a Business" fund at my local bank. It was my dream to work for myself. Anytime I got a bonus, rebate or unexpected money in the mail, I would pop it into that savings account. I know for some this may be considered too slow a process, but then, it worked great for me.

Thanks to: Janine Bolon of SmartCents.

4. Sell Gift Cards

My wife and I own a single location dayspa in Pittsburgh, PA. We maxxed out our credit cards to open our business on 02/02/02. 3 years in we had to relocate so we created an annual 100% Buy 1 Get 1 Free Sales Event. Between 4am and 6am on Black Friday we sold over $80,000 or Gift Cards and destroyed our competitors. No factors, no interest, no bank loans, no overlimit credit cards - just hundreds of happy customers and future bookings. Ask for details on how I can help you do a similar event.

Thanks to: Scott Kerschbaumer of ESSpa Kozmetika Organic Skincare.

5. Business Launch Fundraiser -

Our industry allows business owners to get started for much less. Typically in the Direct Sales industry there is a starter kit. If you run a Business Launch Fundraiser with your warm market you can pre-sell everything in your kit before getting started. This allows you to purchase that kit, have it pre-sold and the best part put money in your pocket right away. It also creates interest and allows you to share your NEW business with those that know, trust and like you!

Thanks to: Cheryl Hill of Mia Bella Candles and More .

6. Rummage Sell Goods And Talent

Find what you have that is most saleable then use the internet to sell it. You can make money fast, easy, cheap and may be even FREE!
Sell nice stuff that you no longer need on ebay (small fee) sell nicer stuff on craigslist (no fee)offering free delivery , write an article for a blogger or create content for article directories. They pay up to $300/ good article. Work 8 hours and you have some Chachange in your pocket. Think outside the mind, and it is easy!

Thanks to: Aisha Bauer of eSutras Organics.

7. Turn Customers Into Investors!

If you are a true TPE, Private Placement is the way to raise money. Private Placement is the fancy name for ‘selling your business’s shares to your customers” and this is a great way to raise capital as your customers become more engaged in and loyal to your business, the moment you turn them into shareholders. It does not need an approval from the SEC however, there are Federal requirements and hence it is highly suggested to have an experienced lawyer’s assistance with the process.

Thanks to: Devesh Dwivedi of Entrepreneur In Making.

8. Is Groupon The Answer

Today, my friend who runs the Mystery Cafe in Minneapolis decided to run a 50% off discount, not through Groupon but through Living Social. He is selling 500 tickets at a discount so that he can have the working capital to get through the next season. He didn't have to go to the bank and gets to play another day. Will these type of discounts save your business - probably not but it will allow you to extend things until all pistons are firing.

Thanks to: David Goldstein of TeamBonding.

9. Start Before You Start

Start fundraising before you even think of your idea. That sounds illogical. The point is that any good fundraising is based on long-term relationships. That means cultivating relationships since day 1. Age 10 is a good start!

Care about people, as they might come back into your life. When you need to make an ask for funding, the relationship will already be there. Relationships are the foundation of all good fundraising. You're asking people to be involved in your life, who already are.

Thanks to: Pamela Hawley of UniversalGiving.

10. Back To the Classroom!

When it's money crunch time around the business I go by the local community college and offer to teach a couple of evening/and/or weekend adult computer literacy or beginning adult piano classes. They keep a waiting list and can get it together pretty quickly. This takes up a good bit of my time, but is a fast, interest free way to earn some cash. The only hard part is ear marking this money specifically for the business and not for some "extra" that's on my list!

Thanks to: Sandy Wheeler of Sandy Wheeler Travel Specialties.

11. Creative ways to more green!

I feel the best way to raise funds is by first spend less and second develop a new service offering that you can sell to your existing client that will not only give you more money it will also provide a valuable solution to you clients challenges.

Thanks to: Rene Beaulieu of SECUrAGLOBE Solutions Inc.

12. Money Sale!

Once I needed cash quickly, and I ran what I called a "Money Sale". I advertised to my best repeat clients, and offered them money certificates that they could buy for 50 cents on the dollar. They could buy as many as they wanted for a limited time. The condition was that they had to wait 60 days to use them. The response was wonderful! I raised the cash I needed for the short term, and my clients got a great deal.

Thanks to: Sharron Lambert of GadgetLady.

13. Far Out Isn't That Far

I attend events & network to bring clients into my business. My suggestion is to connect w/your local newspaper editor, chamber, local radio station & other businesses to raise money to attend events & bring clients into your biz. Maybe you know or will learn about something they don't know. Offer to hold a workshop upon your return to teach your contributors tips that will help their businesses be more profitable- marketing, creating newsletters, articles, reports or videos, etc.

Thanks to: Janette Buckhaulter of Success Transcripts.

14. Sweet Sponsors!

How many people does your business reach and what is their demo? There is power in numbers here, folks. What businesses could benefit from getting in front of that demo, one that you would want to be affiliated with AND has the marketing $$ to throw some cash your way to, say, sponsor an ad campaign? As long as their logo could go next to yours with pride, there are all kinds of things you can get a corporate sponsor to pay for! There's also great PR that can come with the right sponsorship.

Thanks to: Miranda Metz of Soccer Shots.

15. Home Equity Line Of Credit

I knew that getting a small business loan would be very time consuming, so my banker advised us to take out a home equity line of credit. For me, it involved, no closing costs, a very low interest rate and it is super easy to transfer money to your checking account and also to pay it off. We are able to manage all of our accounts online as well as the line of credit.

Thanks to: Sheena Edwards of Lizzie Lou Shoes.

16. The Anti-Answer

My biz isn't big enough yet to be at the raising capital point, and I might never need outside capital as we are growing from internal cash flow. BUT in the early days I turned to my best friend and his business associates to ask for $500K. We never got to a "yes" because among other things there was mention of "there's no such thing as a SILENT partner". This was the single best thing that ever happened to me as an entrepreneur. I've grown my business and I still own 100% of it !!!!!

Thanks to: Jeff Block of JustPaperRoses.com.

17. Vendors as Investor/Lenders

We were able to raise $500K in growth capital by offering some of our key vendors and suppliers an opportunity to participate in a convertible debt offering. The offering provided them with the security of a loan, paying a fixed interest rate over time, along with an option to convert their loans to equity in our company at a known (attractive) price. In funding our growth they were insuring their ongoing role while earning a reasonable ROI on a loan with a "call option" on our success.

Thanks to: Stephen Antisdel of Precept Partners, LLC.

18. Raise Money By Selling Stuff!

I find that the best, and easiest, way to put some cash in my account is to simply ask myself this question: What am I not marketing well that IF I put some energy into marketing well would bring me the cash I need without having to ask for it from anyone?

Invariably, I get a great answer, put together a sale and there you go. You know the rest. Try it!

Thanks to: Elisabeth Donati of creative Wealth Intl., LLC.

19. Ask Customers for Deposits

I work for a lot of big companies. People there know that when budgets get cut, consulting projects usually go first. To protect their projects, they will often pay in advance on a nonrefundable basis. The project gets done, my business has extra operating capital, and everyone is happy.

Thanks to: Donald Mitchell of The Four Hundred Year Project.

20. Equity Share

Equity is giving a part of your company to investment company/individual. What % of company do you want to give up? Have BP and proforma financials, exit strategy together. Have legal council write contract for what you want to give for $$ received. Now your ready! SBA, SCOPE, Accounts receivable financing, Asset financing and other ways can be structured to accomplish funding required. If you would like more info feel free to send me an email!

Thanks to: Bob Morris of Velocity Solutions, LLC.

21. Save During Times of Plenty

Saving a percentage of every revenue generating opportunity ensures there is always money in reserves. When it comes to needing additional cashflow for desired purchases ... manage the old-fashioned way ... budget for it! For a "lemonade stand" tip to raising quick cash: Auction off your unused office supplies like printers, fax machines, telephones, desks, etc. There are many other start-up ventures, home-based businesses, SMBs, churches, and non-profits who are looking for a good deal!

Thanks to: Beverly Floyd of The Corporate Vine.

22. Criss Cross Audiences

We've found that when you criss-cross audiences you increase your exposure & add interest. We'll connect with local celebrities to create an auction quilt for a special event. Right now we're working with the LA Sparks WNBA team. Each team member is decorating a square, signing it and we'll make a gorgeous quilt from the squares to auction. They push through their lists/venues & we'll do the same. The double exposure always increases the bids by at least 4x.

Thanks to: Susan Finch of Binky Patrol Comforting Covers.

23. Savvy Business Owners find...

forward thinking Investors not narrow minded Lenders at the Bank. Before you go into business, the foundation should be solid enough to build on. That means building up trust with future Investors and family members long before you need them. Borrow smaller amounts and pay the loans back faster by making payments every 2 weeks instead of monthly. Using your business plan to build yourself up is ordinary. Everyone does that. Trustworthiness is unusual enough to be creative! Trust is key.

Thanks to: Leah Dubyk of Production Chemical Mfg Inc.

24. Sell Furniture

As of the last two months, I have been raising capital by selling my furniture, and the home we have in Puerto Rico. I need a couple of thousand to get this business off the ground the way I really want and so, I started selling my furniture one piece at a time through the Marketplace on Facebook. The best part is, the ads are free and we've had some sales (about $300 so far). We also decided that half of the proceeds from the sale of the house will go to finance my business. New beginnings!!!

Thanks to: Roxana Nunez of AvidDiva Coaching.

25. A Gift Card in the Mail

Do something different and instead of just asking your family for money take the time to send a card in the mail that includes a gift card to their favourite restaurant. When you later ask for money, they will remember the gift card and be in a better mood. If they forgot about their gift card, you can remind them.

Thanks to: Marc Anderson of TalktoCanada.com.

26. Try a Yard Sale!

It may seem a little out of the ordinary for a retailer to have a yard sale, but customers love it, and it brings people to your store that have never been there before.
We set up outside with everything we want to get rid of, like overstock, items to be discontinued...just this and that, and a lot of it! We even had a lemonade stand.
This brings in extra cash and gives your store a unique way to advertise, too.
Oh yes, and customers have to go inside the shop to pay!

Thanks to: Kaye Snyder of Emaline Brook Specialties, Inc..

27. You Can't Start Too Soon!

Hook your business, somehow, to a charity, to increase networking opportunities, expand your e-mail lists and publicize your work, holding the intent to, eventually, involve more people as clients and investors! Moreover, involve kids in your charitable endeavors; kids love to feel they're making a difference, can contribute and are full of great ideas, schemes and energy. That's a win-win for all.
People all ages love attention, and they love to give attention to others in charitable ways.

Thanks to: Alice A March of The Attention Factor (R).

28. Raising Capital is Easy When..

Know UR target market, competition, revenue model, use of proceeds, have team & a written plan. Develop & practice a pitch that is <30 sec. Attend many networking & biz functions like CEO Space .net. Always take time to understand the person you are speaking with truly listening with a desire to help because even if they are not an investor they know some. So, the more time you take preparing while learning to others desires & needs the faster you will raise all the $ you require! Contact me…

Thanks to: John R Hobbs of John Hobbs International.

29. Get A Sponsor

My business was started with a sponsorship from a friend, literally! She believed in my talent and my dream and was willing to put her own money on the table to help me start my business, so, she offered to "sponsor" me. A few months later, I was in business! Several years later I am still in business! I thank her every chance I get for believing in me!

Thanks to: Christine Haynes of Fezelry Jewelry Designs.

30. Use the Floating Device!

When companies like Amazon order, they actually are paying for the books with net terms (30 or even 60 days after delivery of the goods.) they then go and sell the goods immediately, giving them 60 days to play with the money before they need to pay for the book- which, by then, they have placed a new order with the publisher!

In essence, you can start and grow a business using OPM - other peoples money- with the float that between when you GET the money to when you have to PAY for the stuff!

Thanks to: Issamar Ginzberg of Small Business Strategy.

31. Do the "Tanda" Tango

Tanda ia a South American word for "trusted credit". It works by having a group of friends chip in a specific amount of money every week. Each friend takes a turn at recieving the pot of money until a full cycle is completed. So, 10 friends at $100.00 a week means everyone will get to borrow $1,000.00 each time the cycle completes it self and have it paid back at the same time. The best part is that IT'S INTEREST FREE! Now what would happen if a few businesses got together and tried this?

Thanks to: Edwin Soler of Libreria Berea.

32. Real Estate As A Cash Register

If your state allows cash out refinances - this is a great way to utilize the equity of your home or investment properties to start a new business. While this may extend the term of your loan, the interest rate (for the time being) is usually less.

Thanks to: Cindy Tollen of Sudz N Bubbles, Ltd..

33. Auction! Auction!

A great way you can raise some funds is to auction off work or services. Say you can build websites or you can offer something that would benefit other businesses. Well get an auction going (like ebay) and promote it to others that can benefit from it. You would be surprised at how many get involved in that especially if you offer something like logo design or web design where people can possibly get it cheaper. It's simple but it's a great way to make a few $ while promoting your business.

Thanks to: Ashley Bodi of BusinessBeware.Biz.

34. Sponsorships 4 the Rest of Us

You don't need banks, collateral, credit checks, or rich relatives to generate creative revenue. In any economy, sponsors invest billions of marketing dollars to increase visibility and brand recognition. They see the potential return on investment with sponsorships. And your name doesn't have to be Angelina Jolie or Derek Jeter to cash in. As businesses define their competitive edge in the marketplace, it just makes good business sense to raise money utilizing sponsorship dollars.

Thanks to: Fran Briggs of Get Sponsored!.

35. Blog Your Business or Event

When we decided to build a custom home, we were wary of going back into debt. We bootstrapped our businesses — why not a home?

While we did obtain a regular construction loan, we are financing a portion of the home by blogging the various parts of the project, offering advertising and promotion to the subcontractors we choose, and selling pixel ads to subs, suppliers, and others who want web advertising.

It's helped make a huge project affordable and will benefit us for years to come.

Thanks to: Alison Moore Smith of Lifehacking Make Your Life Amazing.

36. Angel Customers

This assumes a business has "ready and willing" customers and parallels "angel investors"

TURN CUSTOMERS INTO "ANGELS". Ask customers to LOAN you money, with payment/interest in discounts on the product or service, and give them a special "VIP" card they can use themselves, or share with others.

For example, if 100 future customers advance $500 each, that's $50,000. More than enough to get many kinds of businesses started. Plus its a great way to start off with "built in business"

Thanks to: ilene davis of Financial Independence Services.

37. Cashing In On Surveys

When cashflow became limited in my business, I found taking online paid surveys and participating in various paid marketing research studies helped give me the additional cashflow jolt that my business needed to pay expenses and buy additional office materials until the next project was located.

Thanks to: Lisa Sims of Stretching Your Cash.

38. Ask Thy Neighbor!

I think the best thing to do is get your community involve. Knocking on doors and asking your neighbors to invest in your business. Some people will think your crazy and slam doors. However, some will invest in you, especially if you have a great product! Hey it worked for Ben & Jerry's Homemade Ice Cream!

Thanks to: Myke Connolly of Stinky Cakes.

39. Money You Didn't Know You Had

Typical methods in this order: Family, friends, banks (ha, ha), business angels, venture capitalists. But . . .

. . . also, factoring services, extended credit or longer payment terms from suppliers, getting customers to pay in full up front in return for a small discount, sell part of your company in return for investment (not just public companies), establish a better relationship with your existing customers, create items of the highest value just for them at a premium price.

Thanks to: Bruce Hoag of Dr Bruce Hoag.

40. Find A Niche!

To be straight forward and to the point: I found different ways of raising money by simply figuring out what service / product I should offer. I knew what my market was, and I took my knowledge and put it towards something I liked to do. I expanded my business in some sense. The best way to make money, in my opinion is to find some niche that your business could serve something in.

Thanks to: Brian Putt of Campus HotFIX.

41. Avoid External Capital

Ask yourself if you really need to raise a money and if there isn't any smarter way, how to start your business.

Large starting capital can cause lots of problems and slows down your innovation. Instead of following the obvious path, try to experiment.

Insufficient starting funds are your friend and not an enemy - they force you to innovate a look for smarter (and cheaper) solutions. Then you can offer those solutions to your clients.

They will really appreciate it.

Thanks to: Lukas Vedral of Luneos.

42. Private Investing

I cannot take credit for this one, but I recently sat in on a seminar and the speaker discussed this specific example. There is no reason to get down if you are initially told no from your bank. Consider talking to local developers in your area. Some developers are sitting on the sidelines waiting for the credit market to return so they can build their next community. These same developers might be willing to invest their money in a new business idea.

Thanks to: John Panico of Virtual Resources, LLC.

43. GAME TIME!

When stats are going down, and money needs to be raised, there's nothing like a good game for supporters to get involved in. I get into the cause of my book and figure out a way for customers to play a game that accomplishes a good goal. Therefore, buying the book is not just about buying a book, it becomes more about the cause the game represents! As new stats are made, I post the results and give recognition to participants on our social networks. The momentum of that always feels great!

Thanks to: Asadah Kirkland of Beating Black Kids - The book.

44. Freelance With Fervor

Use whatever skill or talent you have to take on freelance work. It can be anything: freelance graphic design, copywriting, bookkeeping, management consulting, etc.

Typically with freelance work, you can complete the tasks on your own time schedule, and you'll have few, if any, expenses against the work. Funnel all proceeds into your new biz.

Thanks to: Susan Greene of Job Hunting Strategies.

45. The Buyer-Your Best Financier

Your deliverables should be so good that your Client/Buyer/Customer must be willing to extend financial help.

I recommend 50% advance for your orders + balance 50% against delivery of Goods. In case of services, you may ask for 50% advance + 40% on Deliverables + 10% after 30 days of implementation.

Remember all cash rich corporates/entrepreneurs sell against advance plus payment on delivery. Nokia sells all their handsets against C.O.D. Let Bankers & Angels chase you to lend their money.

Thanks to: Naresh Vij of Kaveri Consultants, India.

46. Walk In Their Shoes

What would happen if you walked in the shoes of your potential customers? What are their expectations? Where do they see value?
When you walk in their shoes through their experiences, you start understanding their expectations relative value and what it takes to transfer their profits to your bank account. This requires some innovative thinking, potentially taking a risk and leaving your current comfort zone.

Thanks to: Leanne Hoagland-Smith of ADVANCED SYSTEMS.

47. Quick Wins by Selling Stuff

My favorite way of raising cash is to sell stuff on Craig's List. When you run out of things to sell, ask family and friends if they have stuff they were going to give away anyway.

It's not a ton of cash but it can fund a small mailing or marketing project.

Thanks to: Michelle Hill of Winning Proof.

48. Creative Financing

Here are a couple of ways of financing a business, depending on the business model;
1. Finance a receivable or even a purchase order. It could be done privately too - you will be offering a friend an opportunity to make more then at the bank.
2. Pre-sell your product.
3. Offer a discount on the pre-sell price.
4. Micro lending sites, you could bid out your proposal.

The power of your word is greater then you could imagine.

Thanks to: Tommy Stern of DoTheRightThingAmerica.com.

49. Have A Yard Sale!

This is what I did to get started in my first business. This one has twofold benefits...you're making some extra cash but also have a captive audience of people coming to you! Slap a price tag on the merchandise and cha-ching!

Be sure to make a sign advertising your new product or service and plenty of flyers or business cards to give to each shopper.

Sell some stuff on eBay or Craig's List. You can also your eBay page to advertise your new website!

Thanks to: Eric Kates of Mortgage Leads.

50. Get Your Ethics ON!

Be socially innovative in monetizing your product or service. For socially responsible products & services, form partnerships with companies who are wanting to meet their CSR/CSI targets. For e.g. if you're a nursery/landscaping business, negotiate with the nearby motor sale or furniture company that for every vehicle or furniture item sold, they purchase one tree from you or donates the equivalent. This earns you money, is good for the environment and there's a mutual PR upside for you both.

Thanks to: Abdul Waheed Patel of ETHICORE Consulting & Advisory.

51. The Puerto Rican Way-Sociedad

Entreprenur Sociedad is a savings group. Each participant gets a # based on the # buying in. Each member pays their sociedad weekly, bi-weekly or monthly. Your number is the week in you get your payout. A $100 sociedad with 20 people gives you a payout of $2000 on your week. A great way of getting money you need.

Thanks to: Myra Roldan of J.S.I, LLC.

52. It's About Who You Know!

There is not adequate financing in today's current economy. It's important to lean on your "immediate" support network. There are many "incubator" and support groups that you can utilize. In New York City, I took advantage of the FasTrac program for business owners, funded by the city. PR and social media can also be utilized for exposure and getting new clients. Work part-time for someone else. Build a network...it's about who you know. Otherwise, get to know your banker...educate yourself!

Thanks to: Nichole Wright of Bon Vivant Events, PR & Fundraising.

Compiled by Mike Michalowicz, Author of The Toilet Paper Entrepreneur

Tags: bootstrap, financing, mike michalowicz, raise capital, raise money, sponsors, toilet paper entrepreneur

2 Responses to “Creative Ways Of Raising Money”

Tweets that mention Creative Ways Of Raising Money | Toilet Paper Entrepreneur Blog — Topsy.com Says:
May 18th, 2010
[...] This post was mentioned on Twitter by Breakingthe9to5Jail, Team Stinky Cakes and Elisabeth Donati, Sandy Wheeler. Sandy Wheeler said: RT @TPEntrepreneur A blog listing creative ways to raise money http://bit.ly/creativeraise. See me at #10. Great ideas! [...]
Save During Times of Plenty « THE CORPORATE VINE Says:
May 20th, 2010
[...] Click here for more great tips on creative ways of raising money. [...]