Tips for being financially innovative

Whether you're starting your own business or just looking for some extra cash finding the financing you need can be exhausting.No one wants to delve into their life savings to start a business, so finding creative ways to finance is important.Sometimes is takes a little creativity to get your business off the ground.Here are some tips for being financially innovative when trying to open your new business.

Tip #1:Strategic Partnerships
One of the most innovative ways of finding financing for your business is by finding a partner to help with the costs.You may have to do a little digging with this one but you can find out who's reaching your customer base; who offers the service or products that will benefit the customers.Anyone who comes to mind when making this list would make a great potential partner.Once you've found someone you can create a 50/50 partnership with them and they can help out with some of the financing burdens.They can also help in other areas of the company too; management, marketing, etc.

Tip #2: Credit Cards
Probably a last resort to finding financing for your business, but definitely one way of doing it.If you already have good credit then try finding a credit card with very low interest.Don't worry about getting the credit card that will give you double points with the airlines (unless you travel a lot for business).More than half of start up businesses are funded using credit cards.Remember that if you do use a credit card to only use it on a temporary basis as even a low interest rate can catch up with you.You don't want your own personal credit to suffer because then the business will more than likely suffer as well.

Tip #3:Angel Investors
Angel Investors are precisely what they say, "angels."Well, not angels in actuality but to the business they have invested their money in they are truly angels.Angel investors are usually group of individuals looking to invest in a small business that they believe shows a promising future.Some angel investors will take an active roll in the business and take you under their wings to offer advice on creating a successful business.Other angel investors will take a more silent role in their investment.Either way, finding these types of investors can be a real blessing in disguise.

Tip #4:Friends and Family
Although most of us hate asking friends and family for money it can be an economical way to get financing to start up your business.These types of loans are considered "off the books" since they won't affect your credit rating and you won't usually have to pay interest.And although they can be a good mean of finding money they can also cause family feuds if the business doesn't do as good as you thought it would and it takes you longer to repay the money.

Tip #5:Borrow from yourself
Now it's never a good idea to totally deplete your savings account, but it is always an option to look into your life insurance policy or even looking around your house to see what you really do and don't need.Do you have any old furniture you can sell?Or what about using an older computer instead of spending hundreds or thousands on a new one.You'd be surprised at how much money you can make by selling some things you don't really use anymore or think you could do without for the time being.

Hopefully these tips for being financially innovative when starting up a business will help you on your journey to success.