Starting a new business usually requires money. For most aspiring entrepreneurs, self-funding is not a feasible option, so it’s up to them to find ways of securing funding.

Given today’s market condition, it may be tough to find financial support for your startup. It’s not enough to have a solid business model to attract potential investors nowadays. You’ll have to put in extra effort to search for people who are willing to invest in your business idea.

Do it the old-fashioned way via bootstrapping.

“Bootstrapping” means starting a business venture with only your existing savings and cash on hand. It’s similar to self-funding, except you’re not tapping into your regular income streams to power your business dream.

Bootstrapping also involves finding cost-efficient ways of running business processes. Creating an online shop using free tools and taking advantage of social media platforms for marketing are some of the typical ways to keep operating costs cheap.

The obvious disadvantage of this method is relying on a limited pool of funds – at least for the average Joe. On the upside, however, you get to start manageably small and get to scale up at a controlled pace.

Consider applying for a business loan.

Banks and certain government agencies offer financial support to aspiring business owners. Look into getting a small business loan for your startup. Your personal credit rating will be taken into consideration for this method.

Instead of pitching your idea to a business investor, you’ll be facing a loans officer. Make sure your business model is solid and that the numbers add up. Work with your financial advisor and sort out the details so you can present an appealing case to the officer.

Check out crowd funding services.

Crowd funding services like Kickstarter and Indiegogo can be an interesting option for securing funding. Harnessing the power of the Internet and tapping into multiple “mini-investors” can work out well for your business, so long as you set a realistic timetable and achievable goals.

Carefully study these crowd funding platforms as they have various fee structures and rules to follow. There are plenty of horror stories regarding failed crowd funding attempts in various industries ever since the phenomenon started, so wade cautiously in these waters.

Connect with venture capitalists.

A venture capitalist is basically an investor that provides funding for new businesses or supports them by investing additional funds for expansion. These individuals usually have deep pockets but are very discerning when it comes to backing startups, especially those hatched by inexperienced entrepreneurs.

Make sure you have a rock-solid business plan if you’re planning to reach out to these venture capitalists.

Reach out to angel investors.

Like venture capitalists, angel investors also invest in newly launched businesses. These wealthy businessmen are more interested in boosting small businesses to profitability rather than earning a profit from their beneficiaries.

Angel investors typically don’t demand a lot of control in the direction of a business, unlike venture capitalists. With many startups vying for this type of funding, be ready to pull out all the stops when convincing angel investors.

It can be a challenge to get external funding for your startup venture, especially when you’re a newly-minted entrepreneur. Everyone’s looking to get funding for their business ideas nowadays, so it’s a crowded market out there. Don’t lose hope and keep at it – when there’s a will, there’s a way, after all.

James Hendrickson

James Hendrickson is an internet entrepreneur, blogging junky, hunter and personal finance geek.  When he’s not lurking in coffee shops in Portland, Oregon, you’ll find him in the Pacific Northwest’s great outdoors.   James has a masters degree in Sociology from the University of Maryland at College Park and a Bachelors degree on Sociology from Earlham College.  He loves individual stocks, bonds and precious metals.

What would you do if you suddenly won the lottery? Would you get a luxury car, travel the world or maybe invest in the best performing unit trusts or investments. Bonuses are often seen as a prize. We tend to spend our bonuses long before we get them and very often make poor decisions on what to do with the money.

Maybe it is time for you to think about these windfalls a bit differently. Receiving a bonus, or any unexpected income for that matter, allows you to take a moment to evaluate your overall finances. Are you saving enough for the future? Are your debts under control? Allocating a portion of a windfall to save or pay off debts will help maximize its effect. Self-control, reflection and planning can dramatically increase the longevity of a windfall. In the end it’s your long-term happiness that counts.

Reflection

Reflect on instances where you received a large sum of money: How did you spend it and did your choices benefit you in the long run? Think about all the effects of your past decisions and it will help you make better choices in the future. Usually all we’re left with after large purchases is buyer’s remorse. Tap into the consequences of your past financial decisions and it may help you resist any impulsive purchases.

Make a plan

Things rarely just work out and relying on fate is a poor strategic choice. Make a detailed plan on how best to spend your money before the ever-intoxicating holiday season arrives. Always consider your future well-being: Pay off debts, make new investments or make additional contributions to your existing investments. Take care of the important things and can happily spend what’s left.

Don’t totally ignore your desires. Small treats can make the bigger sacrifices a bit easy to handle. We often see saving as a sacrifice, but really it just allows us to continue spending comfortably in the future. Delayed gratification now will lead to a better lifestyle when you retire.

Avoiding the dangers of the festive season

The festive season has become all about spending. It is often difficult to control your spending habits when you’re surrounding by the buzz, the lights and the people. Retailers know this and will try and target you at every corner. Here are a few things to look out for:

• Putting baskets/trollies at the entrance

We tend to want to fill up a basket. It happens subconsciously. If you’ve come to the store of one or a few things then avoid the baskets.

• Stores are designed so that you will spend

There is a reason why all the expensive chocolates, snacks and tidbits are in the cheque out aisle. Stores are designed to make you stop and buy. The long and constant exposure to items tends to lower our self-control. By the time you reach the cheque out those treats just seem to make sense. Make a list and stick to it.

• Targeted shopping

Online shopping is convenient and often cheaper than their physical counterparts. It also affords retailers to target products specifically to you and have a greater chance of getting us to open our wallets.

Take a moment

Theory often doesn’t hold up in practice. It will take some discipline and thought. What happens when that new item you desire overrides any logical plan you formulated? Well, all you need to do is pause.  Break the stimulus/response mentality. Take some time and step away. It will help set you on the right path to wealth creation and financial security.

James Hendrickson

James Hendrickson is an internet entrepreneur, blogging junky, hunter and personal finance geek.  When he’s not lurking in coffee shops in Portland, Oregon, you’ll find him in the Pacific Northwest’s great outdoors.   James has a masters degree in Sociology from the University of Maryland at College Park and a Bachelors degree on Sociology from Earlham College.  He loves individual stocks, bonds and precious metals.