A massive step for any person is to start their own business. There’s as much variety available as stars in the sky; the only problem comes when the money doesn’t come as quickly as the inspiration. Despite twenty percent of businesses failing in their first couple of years, you can push through that if you give a good start.
Here are six ways to get your dream business funded, so that all you have to think about is how to keep up your profit margin.
Small Business Loan
This option is the most heavily used. Whether you’re going through a bank or a business funding specialist, they’re going to ask you very similar and essential questions. These lenders will go over your financial past, your credit score, and how much money you think your company will be able to make.
You will have to pay this back, unlike most of the options on this list, but after you’re approved, it’s a sure thing. That much is worth the initial stress of applying.
Crowdfunding has a lot of allure lately. People are working as advertising for their own companies on sites like Kickstarter to try and get strangers to fund their business. Although this is less reliable- since less than forty percent get what they need- this is money that you don’t have to pay back.
Regardless of what kind of company you’re starting, as long as you can advertise yourself- and are a business that people need- you’ll be able to make funding.
Trade for Services or Goods
If your new company has something other people need, consider trading your expertise or skills for funding. If you design office chairs or websites, consider selling your skills to gain capital. It’s a slower way and depends on how much money you need, but by working through it using the skills your business requires, you’ll get much-needed practice.
Ask Friends and Family
It might be awkward to do, but asking friends and family for support can help your company start. You can tie this in with a Kickstarter for maximum support, or even send out emails and make calls. It’s important to create personalized messages when asking people for money- they’re more likely to ignore mass-emails or things that feel like they were just another person to bother.
Small Business Grant
Another that you wouldn’t have to repay, small business grants offer seeding to help start your company. There are multiple sources for this, everything from nonprofit organizations, to some local governments. There are no federal programs to help start a small business in America.
Wait and Save Up
This option is the one nobody wants to hear. If you’re going to start a new business, but you have no money, it may be best if you save up and work slowly at getting the funds for it. It’s not as fast, and it can be a dream killer- but if you want this company to work, this option may be the last one you have, so you don’t have to give up.