Contributed post
Thinking of taking a leap this year and finally starting up that business you’ve been dreaming for years? This year is the year of the entrepreneur, so take your opportunity now and make something of yourself to share with the world.
However, although we would all love it to be as simple as saying goodbye to your old job and getting to work on your project, you are likely going to need some financial aid to get you going. If you aren’t sure the best way to fund your startup business, here are some of the things which you can do…
Savings
The most obvious way to fund your business is to use any savings you have accrued over the years. If you truly believe in your project, then there is no better way to fund your business than investing in your own success and getting the ball rolling on that dream job. The best thing about using your own money to fund your business is that you don’t owe anyone any money afterwards, you can make your profits and enjoy the fact that you’ve made this happen all by yourself.
Friends and family
If you are truly serious about quitting your job and starting up your business, you can always ask your family or your friends to help you as you start out. When you explain your business idea and what funding you need to the ones closest to you, you will likely find that they are more than happy to help you make your dream come true. Of course, it does mean that you will have to pay them back, but a lot of the time they will be a little more relaxed about the money than a bank or broker. You can also get them involved in the business and they might even want to help you run or promote it.
Angels
A business angel is someone who will offer you cash in exchange for a share of the business. These people could be anyone from a friend, to an old employer or a business person, but they will expect you to come up with a good argument for why they should put their money into your business in the first place. Make sure that you put your case forward and provide examples on how it could grow or what sales you have accrued already.
Banks/loans
If you use a bank or Finance Broking Company to loan you the money, you will need to make sure that you have a full presentation on your business plan and model to show them. If you are to convince them to loan you the money to start up a business, they will likely check your credit rating and ask you a lot of questions about where you see the business growing in the next year or years. This will help them decide whether or not to give you the money.
Grants
Getting a grant to set up your small business is no mean feat. It is not an easy route and you will need to work hard to find a grant that will suit you. Once you go through the application process, it can be a long wait before you find out whether or not they are willing to fund your startup. It might not be the easiest way to go about funding your business, but if you are in no rush then it is always worth a shot.