Getting a new freelancing career off the ground requires cash. Freelancing usually requires less than a big operation, but you won’t get anywhere without at least some start-up capital. If you’re looking to start a new venture, take a look at these five ways to finance your freelancing career:
The traditional way to fund itis with a bank loan. You’ll need to present your bank with a solid work plan, outlining your aims and how you plan to achieve them. Your plan should also detail your target market, how you’re going to reach them and why your product or service will appeal to them.
A loan always comes with interest, so you need to be confident of making the monthly repayments. If you default on your payments or can no longer pay back your loan, you may have to file for bankruptcy. This means you have to be very confident in your innovative idea before taking out a loan.
Family or Friends
An alternative to a bank loan, family or friends with some capital may be willing and able to invest in your freelancing career. They may offer the money as a loan, with more favorable interest rates. Or they may want a stake in your idea in return for their investment. Whichever option you go for, tread carefully.
Mixing finances with friends and family can be tricky. You need to get everything in writing and be sure that everyone knows exactly what they are committing to. Your friend or family member stand to lose their money if your idea isn’t a success.
Trading on the financial markets could also get you the capital you need to get your career up and running. You don’t need lots of experience to get started. Once you’ve learned the basics, you could soon be trading stocks, currencies or commodities, all for a profit. The best traders have a definite trading plan to stick to. They make small gains rather than big losses. And they learn to spot a good deal when they see one.
There are some crowdfunding websites out there. These websites allow you to advertise your freelance concepts to a host of potential investors. These investors will likely want shares in your pursuit in return for the investment. Once you’ve found an investor, consider what kind of contract you want to draw up.
Will your investor’s shares entitle them to say in how your idea progresses? You need to iron out all of the details before committing to the money. Nothing comes without strings attached, and you need to be completely happy with the agreement.
Some freelancers fund their start-ups through savings. They may start off by freelancing as a secondary occupation, maintaining their day job until they’re confident of a reliable freelance income. If you have a dream of running your own freelance business, think into the future.
You could save money at college by finding a part-time job. Once you graduate you could put money aside each week to build your freelance plan pot. Saving money to get it up and running will take a lot of time, but if you are patient, it’s a great way to secure funds without giving away any of your ideas or paying interest on a loan.
When finding finance for your freelance career, you’ll be faced with some difficult decisions. However, once you’ve decided on the best option for you and your venture, you can look to the future, build on that capital and start making some profit.
Alana Downer is an experienced blogger whose main interest lies in finances and new technologies. Currently writing for Learn to Trade, Alana might often be found online, sharing her insights into technology trends which shape the way both businesses and individuals function.