How to Quickly Fund Your Freelance Business or Side Hustle
Starting your own freelance business might be much closer than you think. We are here to dive into practical ways to raise quick cash to kick-start your small business or side hustle.
1. Personal savings
Using your personal savings is one of the most straightforward and faster ways to fund a new home-based business.
It entails investing your money into your business, meaning you will not have to absorb debt or give away equity to outside investors or stakeholders.
You shoulder all the risks, but savor all the rewards.
2. Family and friends
Turning to your family and friends for financial support can be a tempting option, especially if they believe in your business idea and are willing to invest in your success.
Hint, hint—your family and friends might be extra eager to jump aboard as early sponsors if they foresee a share of your future earnings as a return on their initial investment.
Of course, they contribute because they believe in you. Yet the prospect of getting a return is an undeniable incentive.
But mixing personal relationships with business can be tricky, so approach this route with transparency, professionalism, and reasonable expectations.
Both sides must exercise caution:
- Do not promise more than you can deliver
- Do not encourage investor expectations to run wild.
3. Small business loans
A small business loan is financing offered by banks (online or brick-and-mortar), credit unions, and other financial institutions to help entrepreneurs start or grow their businesses.
Present a robust business plan outlining your model, market, projections, and growth strategy. And boost your credit score to enhance approval odds.
Consider the eligibility criteria, collateral requirements, interest rates, and how you plan to pay everything back. Shop around to secure the most favorable terms.
What if writing a business plan is too hard?
If translating your market ideas in writing feels daunting, you can hire a skilled business plan writer from platforms such as Upwork or PeoplePerHour.
The U.S. federal government's SBA extends aid through Small Business Development Centers (SBDC), offering free business consulting, including business plan creation.
Do not get paralyzed by inaction. Every successful entrepreneur began somewhere. Step up, craft your business plan, and let lenders see your potential.
Tip: If know how to draft a business plan solo, consider selling your writing services to entrepreneurs or barter with other businesses for needed services.
4. Online lending platforms
Online lending platforms have cropped up as an alternative funding source for entrepreneurs and small businesses. They take the fear and sting out of visiting a traditional bank.
These programs unite borrowers with single investors or institutional lenders willing to offer loans. A simple application and quick funding are two key benefits.
For example, consider the following platforms:
- LendingClub
- PayPal Working Capital
- Prosper
- SoFi
- Upstart
5. Bartering
Bartering is an old-fashioned method of trade where goods or services get exchanged instead of money. Quid pro quo in action: Do something for me, I do something for you.
In a barter arrangement, you trade your goods or services to a person or business for their goods or services. Both sides should agree on terms of the exchange.
Of course, bartering does not help you raise cash, but preserves your cash reserves for the serious journey ahead.
In starting a home-based business, bartering can be a smart way to gain resources and services you need without spending cash.
For example, if you know how to design or set up a website, you might offer to launch or upkeep a CPA's website in exchange for their accounting services and advice.
Caution: "Set up" need not involve complex design work in Illustrator or Figma. It includes basics like domain registration, hosting advice, WordPress setup, theme selection, blog creation, and nominal email support.
6. Online courses
Creating and selling online courses can be an excellent way to generate income and start a home-based business, especially if you have expertise on a particular subject.
Online course creation is making digital educational content on a specific topic, including video lectures, presentations, quizzes, and downloadable resources.
You can host your courses on platforms such as Udemy, Teachable, Kajabi, or your own website. Learners pay to access your course materials to gain knowledge or skills.
What are you good at? What do you know?
Your expertise, something you excel at, holds immense value. People need mentors. So train them on what you have mastered. Lift them to where you are.
If you can create a TikTok video or Instagram reel, you can produce an audio-visual production to teach prospective students and followers.
Tip: If appearing on camera rattles you, opt for written tutorials or explore an audio-only approach akin to a podcast. Or just launch an actual paid-for podcast.
Poor cameras, equipment, and know-how
Sure, you could stand atop a soapbox and opine with credibility on a fantastic skill you have grasped. But can you package that into a pro presentation?
Comparing your work to other successful training courses, YouTube channels, or TikTok channels with polished videos can be discouraging.
Yet newcomers can level up fast. Start with Canva—upload raw video; blend animated intro, outro, and segue templates with music; and do timeline edits.
Canva has documentation, mobile tutorials, and desktop tutorials to speed you along, while third-party YouTube tutorials are plentiful. Spend an evening learning the basics.
7. Online marketplaces
Got a stash of random rubbish cluttering your space? Knick-knacks, hand-me-downs, and the priceless hoard you have protected for eons? It is a universal human experience.
Now is the time to discard your fossilized riffraff. Instead of chucking them in the trash, toss them into someone else's life.
Convert your "treasures" into cold, hard cash. Unleash your inner entrepreneur and hit up eBay or Craigslist. Your old junk might be the key to fund your small business venture.
You do not need to be a sales whiz or listing guru. Eager buyers are out there searching for your wares. They do not care if your listing looks hideous or amateurish.
8. Home equity loans
A home equity loan is a homeowner's secret weapon—it lets you cash in on your castle's value. You can unlock that treasure trove and put it to work for your dreams.
Your home's equity is the gap between what your place is worth and what you owe. Subtract your mortgage from your home value to get your total equity.
For example, a home worth $150,000 with $100,000 owed has $50,000 in equity.
Yet home equity loans risk foreclosure for missed repayments and can lower future borrowing and home-sale profits.
To reduce hazards, borrow only what you can repay without squeezing yourself. Compare lenders for optimal terms and rates before taking on a home equity loan.
Impetuousness is dangerous:
- Do not jump at the first home equity loan offer.
- Expect a better deal to surface.
- Avoid impulsivity.
9. Credit cards
Credit cards get a bad rap with all that crushing debt drama. But wait! We are talking about savvy, responsible credit card use for financial maestros who keep their utilization low.
Apply for a business credit card to separate personal and business expenses. Upsides include rewards programs and handy expense tracking tools.
Business credit cards often offer the added perk of not showing up on your personal credit report, protecting your personal credit score from potential dings.
If you do not qualify for a business credit card, grab your personal credit card and use it like a shrewd exec. Just keep receipts on a leash to avoid mixing business and pleasure.
Caution: If responsible use of a business credit card seems intimidating, especially with existing personal credit card debt, it is best to avoid this path.
10. Online surveys
Calling all armchair critics and opinionators! Embrace the incredible world of online surveys, where your valuable feedback on products, services, and trends can earn you extra cash.
Register on survey platforms, such as Swagbucks or Survey Junkie, complete surveys based on your profile, and give honest feedback for cash rewards.
A flexible participation schedule, supplemental income, and minimal time investment make online surveys a convenient choice for earning extra cash in your pajamas.
Navigate potential screening-out setbacks and maximize survey opportunities by signing up for multiple platforms, and staying consistent and patient to earn that extra income.
11. Part-time job
So, you are gearing up to launch your very own business, and guess what? Our next grand piece of advice is… get a part-time job! Yes, you read that right.
Clocking in for someone else might seem like the opposite of chasing your entrepreneurial dreams, and sure, it could even feel a tad soul-crushing.
But hang in there… it is just a temporary gig, not a "9 to 5 until retirement" slog.
Think of it as a nifty stepping stone, your faithful vehicle to cruise from point A to the glorious destination of point B: your blooming home-based business.
Who knew the road to being your own boss could have a cheeky detour?
12. Garage sales
Summon your inner business warrior with an epic garage sale. Your mission? Turn your unused deadwood into cash that will fuel your startup machine.
Imagine your garage as a treasure trove of hidden goodies—that old forgotten guitar, those vintage comic books hiding in a dusty box, and let us not forget the retro rollerskates?
But here is the real fun part: the art of the sale itself. Don your entrepreneur cape and haggle like a charming merchant in a hopping bazaar, closing deals, and spinning stories.
Laid-back negotiation skills honed in the modest setting of a garage sale will prove invaluable when engaging future customers and handling business negotiations.
13. Freelance writing
If you excel at writing, then turn your flair for words into startup currency by offering your writing skills to businesses in need.
We are not suggesting you become a full-fledged wordsmith for life. We are proposing you leverage your talent for prose as a side hustle to fuel your business aspirations.
You do not need a fancy writing degree or Pulitzer Prize under your belt. You just need your unique voice and a bit of business-minded vigor.
Avoid stretching yourself thin on platforms like Upwork or writing mills. Let folks know upfront that you prefer to write on topics within your skill range. (This helps avoid burnout.)
Note: We recognize that generative AI—ChatGPT and alike—present an existential threat to freelance writers. Yet expertise and a unique brand voice still hold sway.
14. Retirement funds
Ever heard of the ROBS (Rollovers as Business Startups) funding method? Think retirement funds turned entrepreneurial superhero, ready to seed your business enterprise.
A ROBS transaction lets you use part of your retirement savings without penalties or taxes, investing it straight into your startup to kick-start your business.
It is a strategic way to fund your venture while staying IRS-compliant.
But with any hero's tale, risks lie ahead; you are piercing retirement savings by investing in your business. Great financial power brings great responsibility—follow IRS rules.
15. Pet or house sitting
Get ready to channel your inner pet whisperer and house ninja by offering pet or house sitting services that do not just pamper animals and adobes, but swells your business fund.
You glide in as the temporary guardian of their furry companions and cherished spaces, offering reassurance to pet parents and homeowners.
Here is the twist: it is not just a service; it is building connections.
Happy pets and homeowners could become your advocates, spreading the word about your outstanding pet or house sitting skills, and even your other business endeavors.
Conclusion
An array of unique business funding ideas awaits you. From garage sales to freelance writing, retirement funds to pet and house sitting, your path to entrepreneurship is wide open.
So go ahead, armed with creativity and determination, venture forth without fear and doubt into the exciting landscape of business success.
