How to Invest in Your Own Business When You Can’t Find Other Investors

Investing in your own business – an exciting but scary thought. Of course, in terms of options, it might be the only one you have if you can’t find investors. 

And don’t worry, it’s not just you who’s struggling to find investors. Research shows that almost half of all Americans do not have any investment assets. So for you to not find investors is more than just fine; it’s natural.

That being said, just because investors aren’t lining up doesn’t mean your business dream is over. In fact, some of the most successful businesses out there were self-funded at the start. You can do the same, and here’s how.

Tapping Into Your Savings (But Not All of It)

Using your personal savings is usually the first step most people take when investing in their own business. If you’ve been squirreling away money for years, this might feel like the most natural option. 

Still, the tricky part is knowing how much to use. You don’t want to burn through your emergency fund or every last penny you’ve got saved for retirement. Remember this: The savings rate for Americans is falling. As of December 2024, the personal saving rate in America was 3.8 percent, which is slightly lower than the 2023 figure.

Hence, it’s about finding that balance between giving your business the fuel it needs and ensuring you’re not left scrambling if things go wrong.

If you’re considering dipping into a retirement account like your 401(k), that’s a serious decision that shouldn’t be taken lightly. Sure, there are ways to roll over funds into a business without paying penalties, but you’re risking your future for your present. 

Taking Out a Loan to Get Things Moving

If your savings aren’t enough, loans can fill the gap and give you the runway you need to get off the ground. Plenty of small business owners take this route, especially when traditional investors aren’t interested. The challenge is figuring out what type of loan makes sense for you because, let’s face it, not all loans are created equal.

When you think about business loans, the first thing that probably comes to mind is heading to the bank. But here’s where it gets interesting – there’s a whole other world of financing that doesn’t involve sitting in a bank manager’s office. 

Hard money lenders are a popular option for people who either don’t qualify for traditional loans or need cash fast for investing in properties. Hard money loans usually come from private investors or money lenders who care more about the value of your assets than your credit score. As Source Capital puts it, such a loan is basically money backed up by a physical asset.

Real estate investors lean on hard money lending all the time, especially when they need quick financing that traditional mortgages just can’t provide. Now, these loans do come with higher interest rates, so you’ve got to go into it knowing what you’re signing up for. But if your business idea involves property or equipment you can leverage, it’s a solid way to get the funding you need.

Sell What You Don’t Need to Fund What You Do

You know that old car collecting dust in your garage or those random assets you’ve been holding onto? This might be the time to finally let them go. A lot of people underestimate how much value is just sitting around them. 

Selling personal assets isn’t fun, but it can be a smart way to fund your business without taking on debt or giving away equity.

Think of it as making room – physically and mentally – for your next big move. Whether it’s equipment you no longer use or a second vehicle, cashing them in could give your business the head start it needs.

Partner Up, But Keep It Close

If outside investors aren’t biting, that doesn’t mean you have to go it completely alone. Sometimes, your best investors are the people closest to you – family members, close friends, and maybe former colleagues who believe in you. 

The difference here is you’re not dealing with venture capitalists or angel investors. You’re dealing with people who know you personally and are willing to take a chance because of that trust.

That said, mixing money and personal relationships can get messy fast. If you’re considering this route, treat it like any other business deal. Put everything in writing. 

Set expectations from day one. If it works, it can be a win-win. If it doesn’t, at least you’ve done your part to protect both the relationship and your business.

Here’s the truth: Not every business starts with a big flashy investor cutting you a check. Sometimes, you’re the only one willing to believe in your idea enough to back it. And that’s okay. 

Investing in your own business is risky, sure. But it’s also brave. It forces you to get creative, think outside the box, and push yourself harder because it’s your money on the line.

Whether it’s taking out a loan or leaning on the people who believe in you, there’s always a way to make it work. Just don’t let a lack of investors stop you from chasing what could be the best decision of your life.