During a recent appearance on “The Daily Show,” George Lucas described the problems he faced producing “Red Tails,” an action film about the Tuskegee Airmen opening January 20. The legendary creator of the “Star Wars” and “Indiana Jones” franchises said the film did not receive backing from Hollywood studios because of its all Black cast.
After 23 years of trying to create one of the first all Black action films ever made, Lucas was ultimately forced to finance the production and marketing of the film himself. It goes to show that you can’t always rely on the traditional way of doing things. Sometimes you have to go around the establishment.
Unlike George Lucas, you may not have $50 million to finance your dream project. Luckily, your venture probably doesn’t cost that much. You just have to get a little creative. If you run into finance issues, here are a few funding options you may not have considered:
Crowdsourcing
Crowdsourcing involves collecting donations through an open call. That means asking any and everyone that thinks your idea is a good one to contribute to its success. Thanks to online funding platforms, like Kickstarter, you can do this without leaving your home.
Family and Friends
Your instinct may be to avoid borrowing money from those closest to you. However, this network may be the easiest way to finance your venture. It is best to keep monetary dealings professional, especially if the relationship is personal. Draw up a contract or promissory note. Get it notarized. This gives both parties a sense of security and avoids the drama that can come with verbal agreements.
Contests
Universities and companies often have business and entrepreneurial competitions to help fund creative ventures. Business plan competitions can require a lot of effort to enter and the payoff is not guaranteed. However, it doesn’t hurt to take a chance. The New York Times has a great guide on competitions for small businesses.
Microloans
Microloans are great when you need a little cash to grow your business. Instead of going through a bank, you can obtain a small loan from private, nonprofit intermediaries. Accion USA, one of the largest microlenders in the United States, offers small business loans up to $50,000 as well as business consulting. Lending Club is an online platform that allows individual investors to make small investments of $25 or more until the full loan request is reached. Borrowers can get a personal loan up to $25,000 in three years with fixed interest rates that are often better than those of traditional lenders. Both services allow you to apply online for free.
Partnership
A good partnership allows you to spread out business management responsibilities and financial burdens. It is important to be very selective when choosing a business partner. You will most likely be spending more time with this person than anyone else. Before you launch a business, be sure you and your partner’s values and vision for the new venture are aligned. Draw up a shareholder agreement before you incorporate to safeguard all parties in the event the partnership falls part.
Cortney Cleveland is a public relations practitioner and freelance writer working in New York City. You can follow her on Twitter @CleveInTheCity.
