Are you ready to start the business of your dreams? Make sure you have enough cash flow with these helpful business funding tips!
Getting your hands on small business funding isn’t always easy.
It is, however, fundamental to success. Indeed, failing to raise enough cash is a recipe for trouble. Approximately 30% of new startups have no choice but to close down because they run out of money.
When you’re new to the entrepreneurial game, though, it can be tough to know where to turn for that all-important financial support. But don’t be despondent!
In reality, there’s a wide array of start up funding options at your disposal. You just have to know where to look, what to do, and who to ask. With the right insight and approach, raising the cash to get your business off the ground might not be as difficult as you think.
Looking to bring your business idea to fruition but don’t know where to begin? Let us help! Read on to learn exactly how to find the start up funds you need.
Develop a Solid Professional Network
It’s not what you know, but who you know that counts. Right? That old adage applies in many areas of life, but it’s particularly true when it comes to raising business capital.
Now, knowing the right people could never guarantee you access to cash.
Yet there’s no denying that having a strong professional network will put you in a better position! For example, the relationships you’ve cultivated could open doors to investor meetings, lead to introductions to interested parties, or elicit favors that would otherwise be unavailable.
Do your best to develop your network wherever possible. Of course, it helps if you’ve done this throughout your career anyway! But now’s a good time to start if you haven’t already.
Go to networking events, reach out to old colleagues, go to conferences and trade-shows, and so on. The relationships you develop and the connections you make can lay the groundwork for raising funds.
Use Your Salary
Many entrepreneurs begin their ventures as a side-hustle. In other words, they support themselves with a job and work their business on the side. The result?
They have a stable income to both live on and invest in the idea.
You could think about doing the same. Sure, juggling a full-time job and a side hustle at the same time isn’t easy, and growing the business will definitely take longer than if you went all-in from the outset. But it does mean you have cash coming in each month to push your idea forward.
It’s also a sensible step in terms of risk. After all, you don’t have to go into debt to get started! If the business doesn’t work out, then no harm no foul; you aren’t saddled with loans to repay and no income to do it.
Earn More Money
No money left-over from your paycheque to invest in a business? Well, think about taking on a second job to generate extra cash.
You’ll have even less time on your hands, of course, but you will have some newfound funds at your disposal. That can then be put into the business to bring your idea to fruition.
However, to really speed things along, think about changing your lifestyle as well. Most of us can save thousands of dollars a year with a few simple sacrifices.
For instance, you could sell your house and move back in with your parents or sell your car in favor of public transport. You could stop dining out each week, stop buying lunches every day, and start entertaining friends at home. Make these kinds of changes and you’ll end up with more than enough money with which to grow your business.
Sell Your Stuff
Think about selling your unwanted possessions as well. You might have thousands of dollars tied up in old shoes, clothes, and electronics!
Grab them, dust them off, and flip them online or with front yard sales. You can make a quick buck that you can use to grow your business. Sure, the money won’t last forever. But it may provide a vital cash injection to help you get started.
Speak to Friends and Family
Budding entrepreneurs with affluent loved ones could consider turning to them for financial support as well. They might be more than happy to loan you the money. Even better, it’s unlikely to have interest attached, making it more affordable than alternative borrowing options.
Be sure to take this type of loan as seriously as one from the bank though. The last thing you want is for money to come between you and someone you care about.
Show them your business plan to prove the viability of the loan and pay down your debt on time each month. You could even put a contract together binding you into the deal.
Seek Investment or Take Out a Loan
Our final suggestion is a more traditional means of sourcing business funding. Basically, you could turn to the banks and take on debt to invest in your idea. If you go down this route, then Small Business Administration loans are one worthwhile loan option to consider right now.
Look into angel investors as well. These wealthy individuals are in the business of investing in start-ups! If you pitch a quality idea and demonstrate the right personal qualities, they may give you both money and mentorship to grow your business.
Of course, crowdfunding is another popular modern-day alternative. A well-marketed page can generate huge sums of money in record time. It’s worth a shot- especially if other funding options haven’t worked out thus far.
Time to Find the Small Business Funding You Need
Capital’s the key to turning your business idea into reality. Unfortunately, the process of raising it can feel like a challenge when you’ve never had to do it before. With limited fundraising experience and no idea where to turn, the whole experience can feel stressful and demoralizing.
But there’s good news!
As we’ve seen, there’s actually a good number of business funding options out there to call upon. We hope this post has highlighted the best ones to try first. Keep them in mind and you’ll be on your way to accessing the capital you need in no time.
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