Have you got a fantastic idea for a business? Do you see yourself running a bakery or restaurant? Would you be more at home running your own eCommerce store? Perhaps it’s not a product that you’ve got in mind, but a service. Can you see yourself offering up your skills to those that need them? Most of us have at some point dreamt of starting our own business.
It is easier to start a business than ever before, thanks to the growing use of the internet in day to day life. But you might still wonder how you are going to finance your great idea. Even if you can start up with relatively little capital, you still need money to grow and develop.
There’s always a risk to starting up on your own, but it’s often the financial pressures that put people off. You have got plenty of options, however. Let’s take a look at some of the best.
Use Your Savings
Using your own savings, and asking for help from friends and family is probably the first thing you considered, and if it’s possible, it’s a great way to get started. On the one hand, it’s a risk to your personal finances. On the other, the money is easily accessible, you aren’t risking debt, there’s no one to pay back, and you won’t be at the mercy of investors.
Use Credit Cards
If your startup costs are low, using credit cards can be a great option, especially if you only need to buy supplies and equipment and have no significant expenses. Credit cards give you a flexible way to spend money, and you don’t have to worry about pleasing investors, sharing the profits or sticking to a repayment deadline. But there will be interest, so it’s certainly worth shopping around for low-interest cards.
Credit cards aren’t your only credit option either. Options like those at quality truck leasing let you hire what you need, with monthly repayments. Find the right deals, and you’ll even own the product at the end of the term.
Crowdfunding is becoming more popular with everyone from startup businesses to people looking to fund medical expenses. It is is basically asking the public for donations to your cause.
Crowdfunding can be a great way to make a lot of money quickly but, it’s incredibly competitive now that there are so many campaigns out there. Still, if you are starting a business that appeals to the masses, or fills a specific need, this could be an effective way to make cash.
Appeal to Investors
People with large amounts of money are out there, looking to invest in up and coming businesses. You’ll need to present your ideas well, and you may have to give up some control in your business, some of the profits and even pay interest on the original investment, but it’s a great way to access large amounts of money, quickly. With the right investors, you might even gain experience and knowledge that helps your business, as well as a cash injection.
Take Out a Loan
A bank loan is another option. Unlike investors, you won’t have to worry about losing control or profit. But you will still pay interest, and the cost of missing repayments can be high. If you want to borrow from a bank, you’ll need to present them with a solid business plan and financial forecast. There are also a number of online loan providers that have entered the market over the last few years. If you are UK based then this guide about 10 best business loans in the UK is a good place to start. Again, as we have already mentioned, make sure you have a solid business plan and financial forecast in place.