19 Aug How to Quickly Raise Money for Your Airbnb Business
Does being your own boss and working flexible hours sound like a dream come true? It is. Until getting my own Airbnb business, I’ve never felt so unburdened by our twenty-four-hour clock.
We want you to live the dream too. Here’s some way to quickly raise money for your Airbnb business.
Does Crowdfunding Work for an Airbnb Business?
In the last few years, Indiegogo has even allowed fundraising campaigns to run without an end day. Kickstarter campaigns have a set time that they must be funded within. Often, a campaign will be an “all or nothing” type of adventure.
You won’t want to choose this option! “All or nothing” means that if the campaign doesn’t get funded, nothing happens. Everyone who put money towards the project gets their money back.
Recently, Indiegogo has been setting up campaigns so that they can go on continuously. This might be a better option for a lot of Airbnb business owners, as they continuously try to quickly raise money.
I have also seen Airbnb hosts use crowdfunding campaigns to cultivate new and interesting experiences. Do you want to start a special overnight art studio in NYC? Have an Airbnb with a wall-length aquarium? Get people interested!
While there are a few other resources out there, the best option is to weigh out what your project needs. Use your requirements and goals as the tool to guide you forward.
The US Government
Uncle Sam is always here to save the day. Did you know about the Small Business Administration (SBA)?
The SBA offers a variety of different loan types. They have so much incredible content on their site. Information spans how to determine how much you’ll need, how to get aid from investors, and even how to self-fund.
The SBA also offers grants as an opportunity to non-profits and educational institutions. You might be able to quickly raise money if your Airbnb meets these criteria.
Friend and Family Loans
Your closest bonds have an invested interest in seeing you succeed. If you plan everything out ahead of time, people are more likely to lend you money. It’s important to already have the process going before you ask from friends and family. They’ll be less hesitant to invest if they know your dream project is a reality.
However, taking money from relatives and friends can get tricky. You have the chance of damaging that bond or relationship if the financial situation gets rocky. This is heavy on both sides of the pro and con list.
Let’s just say that Aunt Sally might not charge as much interest as a bank if you’re trying to quickly raise money. But, you might be able to pick her brain about different Airbnb business funding ideas around the Thanksgiving table.
Find A Partner Or Co-Host
This could be a Co-Host to help run your Airbnb business, or to help finance it. We’ve talked previously about the perks of having a Co-Host. However, it’s always an option to recruit investors to help you finance your locations.
Start by breaking up the total costs. Then see how many people would be willing to pay part of that amount. Make an agreement that after X months of income they’ll get X percent of sales.
By locking yourself it, it gets you committed to putting time and effort into your Airbnb business. The extra income, in the beginning, can help you set up your listing, figure out marketing, and get booking!
The Temptation of Credit Cards
While not an option for all, credit cards are a quick way to generate revenue for your business. Paying off your card frequently can also lead to increased credit scores. A higher credit score means a bigger loan in the long run.
When I dabbled with credit cards, I used ones that had a cashback system. My main reason is so that I wouldn’t have to walk around with cash. Also, all my business expenses are tracked in one place.
The key to it all was paying the card back in full at the end of the month. This meant that none of my purchases acquired any interest, and I got free money from everything I bought! Definitely a win-win.
What you don’t want to use a credit card is when paying off other forms of debt. That’s when the downward spiral begins.
It’s always, always the little things that add up. I can’t stress how important it is to be aware and smart about your money.
Take your current finances, right now, and see how you’re doing. Even if you don’t like where you are, a dose of reality is necessary. Are you spending frivolously short term? Or are you saving up to invest in your future?
Even setting aside 10% of your weekly income right now can make all the difference!
When getting into an Airbnb business, there are a lot of overhead costs. Furnishing, upfront leases, cleaning, staging, photography, and personal time are just some items on the list! If you don’t take your time and rush, you might miss something important!
For example, are you prepared to handle landlords? Walking into the leasing office without the proper funds, estimates of costs, or paperwork will waste you both time and money.
Are You Ready To Quickly Raise Money?
Whether you’re playing the long game for investments or scrounging up ways to quickly raise money, anything is possible. Once you get past the threshold of putting in that quality time and effort, the business can start to generate income on its own.
All you need is a little bit of time, effort, and a whole lot of love.
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