For the majority of students, money is usually fairly tight throughout the duration of studying at university. This means that funding a startup often seems like a pipedream, given that businesses can be expensive to run. Luckily, however, there are numerous options available to those students who have enough time on their hands to run a business, or are thinking of starting one straight after graduation. Here are some of the options.
One of the easiest ways for students to secure funding is with loans. This could be through a lender specialising in short term student payday loans, such as Smart-Pig, or from student loans themselves (although student loans are not really intended for this purpose).
It is unlikely that banks or other mainstream lenders will forward a student the money to fund a startup. As such, it is alternative lenders which are more likely to be a reliable source of funding for students. The startup would still have to be relatively small and low cost, though.
Websites like Kickstarter have become incredibly popular in recent years, as they offer the means to secure funding quickly by presenting a business plan/idea/strategy to a host of potential investors online. The investors are regular people who will often put in a small amount of their money to contribute towards the funding of the startup.
This is known as crowdfunding, and it is an effective way of acquiring the money for a business. It is a fairly simple process, and is particularly effective for students (for whom it can be hard to find a suitable/willing lender).
Bootstrapping is a tough route to go down, but the rewards can make up for it. It involves starting and running a (low cost/costless) business with little or no external funding. Those who bootstrap their way to business success do so by using the resources they have and spending only what they need to.
A student could, for example, conduct social media marketing for different clients, or offer any other kind of online service which would require little or no funding to start with. This method means no repayment of a loan is required, and can teach students how to use the resources available to them effectively.
There are numerous different creative ways that students can secure funding for a startup. With a sound business plan and considered strategy, even the smallest amount of funding can go a long way in helping forge a pathway towards business success.