Creativity is the key when you own your own business. If you are a small business, you can be the owner, marketing department, salesman, accountant, treasurer and even the janitor all rolled into one. And every new challenge requires a creative new solution. Even if you are bigger, you probably still have a hand in everything that happens in the company.
Its sensible then you need creative corporate finance when it comes to your business as well.
There are basically two ways to approach the problem of creatively financing a company. You can try to collect funds from an external resource to help you cover expenses, or try to reduce costs in the first place. Fortunately, there are plenty of creative business financing techniques you can use for both.
Spend less creative funding by saving money
Create a Buy Alliance
Many suppliers offer discounts to those who buy in bulk. Unfortunately, you are not Wal Mart. But by working with another local company or buying alliance you can get the same discount as the major retailers.
Use Open Source Software
Instead of purchasing Microsoft Office for each computer in your company, consider using OpenOffice with open source. Its free and an excellent replacement. If you need to do some basic photo editing, try GIMP. For virus protection try AVG or Windows Security Essentials. Go to Cnet.com and take a look at all the free downloads offered there. You can find some great alternatives to the expensive software you were considering.
Brainstorm with employees
If you have employees, gather all together and explain that you need to save money. Ask what ways they can think of saving money. You may find that your employees are willing to bring their own coffee mugs to the job, or make the office party a potty if they understand the companys situation.
Get More Find the Most Creative Business Financing Options
If cutting costs are not enough, it may be time to look for some creative business finances from external sources. Here are some places you should check.
Corporate finance from family and friends Virginmoneyus.com
Many companies have borrowed money from family and friends to get them through tough times or away from the ground. Family and friends can be an excellent resource, which provides low or even free loans. It can also be dangerous for the relationship. Unlike a typical creditor, you must spend time with this lender. They may also feel that because they gave you money, they have the right to disturb how you do business. Companies like Virginmoneyus.com help you make the loan official. Laying out terms and make sure both parties understand them is the best thing you can do to protect your investment, business, and relationship.
Creative Revenue Based Lending
Another creative business financing option is income based lending. At a time when the credit crunch has doubts or unable to borrow, this alternative lending process has emerged. Revenue lending focuses on what a company actually does, rather than its owners credit score. This allows companies to lend to entrepreneurs at very competitive rates and with much more flexibility on repayment options. Performance is not alone, since hundreds of revenue based lenders have recently received press coverage of an excited media.
Crowd Funding Ingiegogo.com
If you want real creative business financing, check out Indiegogo.com. Users can send a project and how much money they need to raise. You can then indicate what incentives people who donate can receive. For example, a user received a few thousand dollars for his small company collected from a few hundred lenders, who did not expect anything in return. The idea is very creative and lets you train your pitch at least. So far, this publication funding website has funded more than 5,000 projects worldwide.
This list may be short, but as the beginning of the article stated, you must be creative to be a business owner. Hopefully, it was enough to get your mind moving in new directions so you can bring your own creative business finance solutions. If you have ideas, please share them with a comment or message.