How To Fund Your Startup Without Spending Savings

how to fund startup business without using up all personal savings

There is plenty of excitement that comes with a startup. Generally, the conception of the idea alone can be enough to get your pulse racing. However, once the initial rush dies down you are going to be left with the fact of the matter, which is that startups cost money, and money does not grow on trees. Getting investors to feel the same level of passion for your idea as you do can be challenging and depending on your entrepreneurial goals and style you may be more selective with who you accept funding from than you initially thought. 

While many business owners elect to find their startups independently this is not a reality for everyone. Some freelancers simply do not have the means or desire to drain their personal savings to get their business up and running. Thankfully, that is not the only route you can follow. After you have written your business plan and determined exactly what you do and do not need to get off the ground you can assess who and where you will turn to for funding beyond yourself. 

Use Alternate Accounts 

Think about your financial situation, while you may be uncomfortable taking cash from savings to open shop, you might have money in other areas that feel less risky or sacrificial to you. Cashing in investments, borrowing from your home’s equity, or accessing the cash value of your life insurance policy are all examples of using your money, but not necessarily your savings. You can review a guide on how you can borrow against your life insurance policy. These guides will give you examples of both the benefits and the potential risks so that you can determine if this fits your long-term plan. Factoring in things like a spouse and/or children is another element that would impact this option, these guides can also provide answers to FAQ from other people who have considered this same method. 

Get A Bank Loan 

Your credit history is going to play a large role in whether this option is in your best interest. As an individual, if you do not have good credit history or assets that you are willing to put up for collateral a bank loan may not be the best choice. Knowing this up front means that you can determine quickly if this is something to look into or simply an option that does not deserve your time and consideration. Bank loans can be wonderful though because they provide you with a lump sum of cash up front which may allow you to hit the ground running in ways that piecing together funding from other areas may not. 


This option is quickly gaining in popularity especially with the steep incline of the ways that the internet and social media impact consumers and the economy in general. Taking advantage of social media and crowdfunding sites to build brand awareness is a creative way to cultivate a following. When you are starting a small business on a budget it is essential to watch the dollar and be intentional with your fundraising. Crowdfunding allows those who share your passion or believe in your business to financially contribute to its opening and hopeful success.

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