We started Arden Reed, a custom menswear company, with only our savings.
After a few months of operating, our cash had dwindled down to a few thousand dollars. We had people knocking on our doors to invest and we still do, but we wanted to retain our equity for as long as possible.
The founder of Maxim Magazine, Felix Dennis, once said, “Never, never, never, never hand over a single share of anything you have acquired or created if you can help it. Nothing. Not one share. To no one. No matter what the reason – unless you genuinely have to.”
We thought creatively. We had to. We brainstormed and executed. The results speak for themselves. We raised $60,000 over 3 months without giving up a single share. Based on our experience, we’re sharing the best ways to fund your business without giving up equity.
1. Apply for Crowdfunding
We pitched Kickstarter in late 2011 and were rejected. Kickstarter didn’t launch companies and they didn’t like the idea. They were more into the project space….
2. Get a Loan from Friends & Family
3. Apply to Startup Chile
4. Use your Credit Cards
Tim Ferris is probably the most well known example. He pulled $5,000 in credit card loans to finance his sports nutrition company….
5. Start Side Projects
The founders of AirBnB were in a similar position in the early months of their startup. They had a bit of cash coming in, but not enough to sustain themselves. Their backs were against the wall. They started brainstorming ideas to bring in extra income during the Democratic National Convention….
Money shouldn’t be an objection when you’re starting a company. Be creative. Use your resources and do things that don’t scale.
We’ve been able to raise over $60,000 in funding without giving up a single share to investors. We and countless other entrepreneurs have proven its not impossible. Get fundraising out of your head, think creatively and start building an incredible company.
Carlos Solorio is the founder of Arden Reed, a custom menswear company.
Read full article: 5 Creative Ways to Raise Money (Without Giving up Equity).