But how can I get the money to start out? This is one of the first questions you will ask yourself after deciding you want to seriously move forward with your business idea.
In a lot of cases you don’t need money to get started; with modern technology now connecting people and social media tools at your disposal you can start with as little as your Facebook or Twitter account.
Not having personal funds to get started should not stop you moving forward. Read more about this HERE.
However if it is a project/idea that does need funds, it is possible to raise them as a teen entrepreneur. And it’s not out of the question to get creative and have fun while doing it!
These 3 Guys got their company started by sitting on a toilet!
Simon, Jehan and Danny are 3 Australians who one day found out about the fact that 2.4 billion people around the world don’t have access to a toilet.
This didn’t sit right with them and they decided to put their minds together to try and do something about it. They came up with the idea to start a business called Who Gives a Crap, selling recycled toilet paper, with the aim of putting 50% of the profits towards hygiene/sanitation projects and the building of toilets for countries in need.
You might say that this it is an idea with great intentions but that it must have taken a lot to get the initial funds to make such an idea tangible and that surely Simon, Jehan and Danny were well off or had families and sponsors in the right places with the funds they needed.
This was not the case though, and you would be surprised at how simple it can be.
They began by simply advertising a campaign where Simon sat on a toilet until enough pre-orders had been sold to start production. It took 50 hours!!
Where are they now? They have raised $1,175,000 to date and are still growing.
Below are some tips on initial funding techniques you can use to get yourself started.
- What Simon, Jehan and Danny did is called Crowdfunding.
It’s one of the most popular ways for young entrepreneurs to get started. In a nutshell you get your idea out to the world and then market it- asking the wider public for funds to get you started.
There are specific websites that serve to help you run your crowdfunding campaign, such as Indiegogo.
You can of course run the campaign without the help of a third party, either way it is going to be hard work but don’t be deterred, this is well within your capabilities.
Read more about what crowdfunding is and how it is done HERE.
2. Get working yourself.
We can’t say it enough- You don’t need thousands of dollars. It is common to hear about startups that got going with only $100.
This amount is possible to earn yourself….get that part time job after school and put in the hours and effort of saving.
For some more reading on this check out this article “How To Start A Business With Only $100 In The Bank”.
3. Bank Loans or Credit Cards.
It would be advised to avoid this option if possible, being in debt to the bank is not something you want to come along with your startup.
If you do take this option make sure you check out all the interest rates and any hidden fees that may be included. Read in depth and have someone go over with you all the paperwork and terms and conditions before making your decision.
Don’t forget to bring along a parent or guardian to the bank with you because they will need to co-sign.
4. Money Loans off family.
Lending off family is a totally different story to lending off the bank. These are people you trust and who surely have your best interests at heart.
And as we have mentioned you don’t need thousands of dollars either; remember it’s okay to start little.
One good tip is to go about this professionally, go to them with a business plan and re-payment plan already set up. This way all information is transparent and they know exactly where their funds will be going.