Funding Your Web Work Dream
So, you’re ready to do it: the time has come to quit your full-time job, go independent, and join the self-employed web worker economy. Only one thing stands in your way: the necessity to keep paying the rent and buying groceries while your new microbusiness gets on its feet. What’s a web worker to do?
Use Your Savings. This is the safest way to get going, if you value not being stuck owing money to someone else. If you can live off of money in the bank while you’re getting your business going, you can continue to make all of your own decisions without being responsible to banks or investors.
Tap Friends and Family – If anyone is going to believe in your prospects, mom and dad are the most likely. If you have some plan for generating excess income, above your own needs, you can take in private loans from friends and family and offer to pay a reasonable interest rate.
Small Business Loans – In the US, the Small Business Administration can help you get a loan from a bank or other lender. Alternatively, if you’ve been banking at a small and friendly bank for years, you can talk to the loan officer directly about their small business products.
Venture Capital – We’ve all seen the stories about VC-backed sites that make a bundle of money for all concerned. But even if your web work dream is to build an online powerhouse, you need to think twice about VC money. Typically, you’ll give up both a substantial chunk of ownership and control to get funding, and end up with a boss (or a board of bosses), which may be what you were seeking to escape in the first place. But if you need half a million dollars or more, this may be the only feasible way to get the money.
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