If you have already been in business and share a loyal customer following then your customers are a great option. Some musicians and film makers are going to their fans for financing.
Australian musician Clint Crighton has set up a method to raise money from his fans. For 100 Australian dollars, he gives his fans special privileges, a lifetime free entrance pass to his live gigs and a few more perks like a trip to Los Angeles for the recording of his album.
I have read about a few British teenagers who raised more than $ 100,000 just by selling closing credits to their film.
I have also heard of another business that raised money from their customers through the internet. The idea here is to have several people invest small amounts of money that add up to a lot of money.
If you have 1000 people invest $ 100 each, you end up with $ 100,000. I think hundred thousand dollars is a lot of money for most businesses.
Vinil Ramdev is a business coach and an entrepreneur who helps business owners increase revenues, cut costs and maximize profitability. He is the editor of startupgrowthexpert.com (startupgrowthexpert.com)