Raising Money vs Making Money: Which is Easier?

The answer to this question may seem obvious, but the truth is that there are advantages and disadvantages to both.

Raising money can be easier in some cases because it allows you to have more control over the process. 

However, one major downside is that you will need to give up equity or take on debt which means less ownership of your company. 

Making money is a great option if you don’t want to give away any ownership of your company, but it can be difficult with so many other competitors out there trying for the same thing.

Raising money is never an easy task. 

You need to know where your resources are, how much you can get, and what you have to offer in exchange. 

On the other hand, making money is often quite simple!

If you have a product or service that people want, then it is just about finding customers who will buy it from you at a price that makes sense for both parties involved.

This blog post explores the differences between these two approaches so that business owners can find out which one they should use when launching their next project!

Ways To Raising Money and Their Pros and Cons

a). Bootstrapping

Bootstrapping is when a business owner uses their own personal savings or money from bank loans to support the project

Pros: 

No risk of losing equity, no giving up ownership to investors

You are 100% in control

You can avoid debt

Cons: 

Can take longer to get off the ground without outside support, not possible for every business idea

Difficult decisions because you are also your bank account and have limited funds.

You will need to be very frugal with expenses so that you can stretch out

It requires quick success or it can be very difficult to see the company’s vision completed

b). Crowdfunding

Crowdfunding is when a business owner uses their community (friends, family, strangers) to invest in their company

Pros: 

You can keep full ownership of your company

Gets money quickly for your project

Cons: 

Can be difficult to get enough people on board with the idea, especially strangers. This can make it more challenging to reach your financial goal

You might have to give up some control of the company or offer incentives/rewards to get people interested

It increases the pressure to succeed because so many people are invested in the company

c). Venture Capital

Venture Capital is when a business owner takes money from investors who want to see a return on their investment

Pros: 

You can get the money you need quickly and have more resources at your disposal because of the investors

You don’t have to give up equity or go into debt

Cons: 

You lose some control of the company as it is being controlled by the board of directors

If you don’t have a proven track record, it can be difficult to get investors on board with your idea

You have to give up a percentage of your company’s equity which means less ownership

d). Debt Financing

Debt financing is when you take a loan from a bank or other lending institution

Pros: 

You can get the money you need quickly and have more resources at your disposal because of the loan

You don’t have to give up equity or go into debt

Cons: 

You are responsible for paying back the loan with interest

The terms of the loan might not be favorable

You could lose your company if you can’t pay back the loan

e). Friends and family

Friends and family can be a great source of financing for your business

Pros: 

You don’t have to pay back the money with interest

They might be more willing to help you than a bank or other lending institution

Cons: 

There might not be enough money available from friends and family to finance your business

The terms of the loan might not be favorable

You could lose relationships if you can’t pay back the loan

Ways to Make Money and their Pros and Cons

Instead of raising money, you could also try to make money. There are several ways to do this, and each has its pros and cons.

a). Start Online Trading

Online trading is the buying and selling of securities, such as stocks, through a brokerage firm or online trading platform.

Pros: 

You can start trading quickly and don’t have to give up equity or go into debt

There are several options that cater to all levels of investors

You can trade from anywhere in the world

Cons: 

Trading is risky – you can lose money very quickly

You need to be able to make quick decisions

b). Invest in a Business

When you invest in a business, you become a part of that company and share in its profits and losses.

Pros: 

You can become a part of a business you believe in

You’ll have more control over the direction of your business

You can work with a team that shares your vision and passion

Cons: 

Investing in a business takes a lot of time and effort

You need to give up equity or go into debt to invest

c). Start an Online Business

If you have a good idea, then starting an online business might be right for you.

Pros: 

You don’t need to give up equity or go into debt

You can start quickly and from anywhere in the world

There are several resources to help you get started

Cons: 

You have to do everything yourself, which can be time-consuming and stressful

Even if you are successful in making money online, it might take a long time before you see that reflected in your bank account

d). Start a blog

A blog is a website where you share your thoughts and opinions on different topics with the world.

Pros: 

You don’t need to give up equity or go into debt to start a blog

It’s quick and easy to get started, especially if everything is already set up for you by your web host provider

You can work from anywhere in the world

Cons: 

You have to do everything yourself, which can be time-consuming and stressful

Even if you are successful in making money online through your blog, it might take a long time before you see that reflected in your bank account.

You could also start an e-commerce store or sell products on Amazon or eBay for an additional revenue stream.

e). Sell Your Services to Clients

People often think of freelancing as a way to make money when you need it or in between other jobs, but many people rely on their freelance income full-time and do incredibly well at it.

Pros: 

You can start quickly and don’t have to give up equity

You control how much work you take on and can therefore set your schedule

Cons:  

It’s difficult to get started freelancing if you don’t have any experience or a portfolio, which is why it might be helpful to do some freelance projects while working full-time at another job to build that up

You might not always have work, which can be unpredictable and stressful

f). Sell Stuff on eBay or Amazon

If you have any old stuff lying around your house that you don’t use or need anymore, why not sell it on eBay or Amazon? You could also start an e-commerce store.

Pros: 

It’s easy to get started

You can start quickly and from anywhere in the world

There are many resources to help you get started

Cons: 

It can be not easy to make money if you don’t have a lot of stuff to sell

You need to invest time and effort into setting up your store and marketing it properly

g). Sell Your Old Stuff on Craigslist

Selling your old stuff is a great way to make some money when you need it.

You can post ads for free in the “for sale” section of Craigslist, or if you’re selling bigger items you could use their online chat system and schedule an appointment with interested people.

Pros: 

It’s easy to get started

You can start quickly and from anywhere in the world

There are several resources to help you get started

Cons: 

You might not always have stuff to sell, which can be unpredictable and stressful

People might not want to buy your old stuff, especially if it’s not in great condition

You need to invest time and effort into setting up your ad and communicating with buyers

h). Rent Out a Room in Your House

If you have an extra room in your house, you could rent it out to someone who needs a place to stay.

Pros: 

You can start quickly and from anywhere in the world

There are many resources to help you get started

You can make a lot of money if you have a spare room that’s in high demand

Cons: 

You might not always have a spare room, which can be unpredictable and stressful

You need to invest time and effort into setting up your ad and communicating with potential tenants

Raising Money vs Making Money: Verdict

Raising money is a lot easier than making money.

This may seem like a strange thing to say, but it’s true. It can be as easy as asking your friends and family for cash or going to the bank and applying for a loan. 

The only hard part about raising money is convincing someone else that they should give you their cash!

Making money on the other hand usually requires some creative thinking, which isn’t always an easy process.