When getting an independent project off the ground, one of the most challenging aspects you can run into is raising funds. Whether it’s for an indie film shoot or a niche product line, the first steps toward making your project a reality will likely mean coming up with a plan and securing the finances.
Finding multiple channels which can help to automatically fund your projects is crucial, as you can follow your project plan without dealing with the strings which can be attached to traditional loans. We’ve broken down 6 ways you can secure auto funding for you projects and the benefits behind them.
- Crowdfund your project
Using online crowdfunding platforms can allow you to showcase your project plan to thousands of potential individual investors. Using Kickstarter, Indiegogo and other platforms, people can invest in your project in return for perks, small gifts, or access to the finished product.
Pros: Your crowdfunding page can gather momentum and get funding from around the world.
Cons: You may need push your crowdfunding link across social media so people you know can get your project noticed.
- Hold fundraising events
If you only need a small amount of money to get your project rolling, holding local fundraising events can provide the answer. Holding auctions, house parties, raffles, or similar can bring together like-minded communities and help to get your project noticed. You may even get some great advice along the way.
Pros: Fundraisers give you an opportunity to network while having fun and socialising.
Cons: You’ll usually need to cover the expenses upfront and rely on the event to pull in more funds than you spent.
- Look at available grants
There are a number of grants designed to help entrepreneurs, artists, and young people to fund their projects. You will need to fill out an application and provide a thought-out project plan so your project stands out. You can look at grants in Africa as well as potential international grants.
Pros: Grants can award your project with full funding in order to see your idea pan out.
Cons: Many people can compete for the limited funding that grant providers have.
- Invest in forex markets
Looking into a trusted online forex broker can help to make the funds you already have go further. By investing your money into commodities and other assets using a forex broker, you can accrue profits and use what you’ve gained to fund your project.
Pros: There’s a lot of potential to grow your investments by making smart decisions on which assets you want to invest in.
Cons: You will need to get familiar with the terminology and how investing in the forex market works – but there are plenty of eBooks and tutorials to get you started.
- Help from friends and family
Some of the best potential investors into your project could be your friends and family. Depending on their financial position, they could be happy donating you the money to get started or act as a key investor to share in the benefits later down the line.
Pros: If you have a good, trusting relationship with family then you can agree the best terms possible for both sides.
Cons: Mixing family and finance can cause issues, especially if your project doesn’t pan out as intended.
- Find a key investor
Rather than putting your project out for individual crowdfunding investors, you could try to find an investor who can provide the bulk of your funding. There are a range of venture capital firms who you could potentially pitch to in order to secure funding.
Pros: Having a single investor or firm providing your funding can foster a good relationship and potentially secure full funding from their portfolio.
Cons: Similar to grants, there can be a high level of competition for investment from venture capital firms.
Mapping out the plan for your project can help you to identify what the best sources of funding for your project may be. The main thing is to match your aspirations with the level of investment you need to bring your project to life and use multiple channels to your advantage.