When we were first getting started with our business, we approached friends & family who might be interested in supporting us and asked for short-term Friend & Family loans. People were all able to loan different amounts, but we kept each agreement legitimate with loan documents, a reasonable interest rate, and a repayment schedule. This helped give us a little startup capital, preserved the relationship, and still gave them a little profit (through the loan interest).
If that doesn't feel like a fit, I might consider approaching a local bank for a line of credit (since you anticipate being able to repay the investment quickly), or finding another kind of small business lender. Here in El Paso, we've worked with LiftFund, which is a microlender that specifically works with start-ups (and therefore has more favorable terms regarding collateral, owner investment, etc.). They only operate in the southwest, but I'm sure other communities have similar companies.
We did both of these things ^ when raising capital for our brick-and-mortar in addition to bringing on permanent investors (who each now own a percentage of our company) and launching a Kickstarter campaign. While Kickstarter campaigns can be one way to raise capital (and increase community engagement), they are a lot of work, and not the best fit for every kind of business. Similarly, cultivating investor relationships can be very time-consuming, and often results in selling of a percentage of your company. Both options worked well for us, but might not be the path you want to pursue.
Hope that helps give you some ideas! Best of luck!
Michelle Savage
Co-Founder & President
Savage Goods | @savagegoods | savagegoods.com
