There are ways apart from debt or equity in which an entrepreneur can raise funds. Some of them are mentioned below.

1) Franchising

For businesses that franchising opportunities, this is another strategy for a fund infusion. As an example, consider a chain of clinics that is looking to raise capital. The chain can consider selling a couple of clinics to a franchisee. The franchisee can purchase the 2 clinics and provide a franchising free as well to the chain in return for clinic management services. In this manner, the chain can keep its brand across all its existing clinics and also free up some cash.

2) Joint Ventures

The company can forge joint ventures with other like-minded entities for addressing some other markets. These Joint Ventures can be structured to have immediate cash flows for the company.

3) Selling some assets

If the company has more than one line of business, it can consider selling one of those lines of businesses. Alternatively, it can sell some assets. For example, the company can sell some machinery if it is unable to utilize its entire production capacity.

4) Lease assets

If a company has excess production capacity, it can also lease its equipment to other players in the industry.

5) Undertake services

In case a business has excess manpower, it can utilize them for new temporary lines of business with quick cash generation such as outsourced software development, consulting or trading goods.

6) Grants and tax breaks

Federal, state and central governments provide several incentives for entrepreneurs. These incentives range from grants to tax breaks.

 

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