Whilst university is a place for academic learning and development, it is also a place where exciting opportunities may arise outside of the lecture theatres. Some students may even consider the possibility of starting their very own business during their studies, something which is both bold and ambitious. If you are considering this option, here are some of the ways you might want to fund your startup in the early days.
Bootstrapping
Bootstrapping involves starting and running a business with very little or no funding. You use the money the business makes to fund its operations, so it certainly takes some skill and careful planning to work.
This is the ideal option if you want to start a low cost business, as you do not need to rely on investors or lenders to prop your business up, and you won’t have to make any repayments. Bootstrapping is certainly one of the riskier options when it comes to funding a business, but it can be incredibly effective if it works.
Loans
One of the more common and reliable ways to fund a startup is through taking out a loan. This could be with a student friendly lender such as Smart Pig, or from any other lender which you see fit, such as a bank.
The repayment terms of different lenders are sure to vary, so look out for these and make sure you have a decent repayment plan. Loans are fairly easy to access, but bear in mind that banks are now fairly reluctant to loan to small business ventures, which they regard as risky, so alternative lenders may be the best option.
University Schemes/Grants
It is also worth noting that many universities have schemes set up for both undergraduates and postgraduates which offer funding for entrepreneurs. These can be a great way to access a significant amount of funding which you might not have to pay back.
There are also various government grant schemes available to new entrepreneurs who have a promising business plan, although some are industry specific, so it is well worth looking further into these. The fact that you don’t have to pay a grant back or give away any business equity makes them an incredibly effective source of funding.
These are just some of the ways you can fund your startup whilst at university. Be sure to consider which method will best suit your business plan and then use it wisely when running your own startup.
