Realistic Ways to Fund Your Small Business Venture
So, you’ve decided you want to free yourself from the shackles of employment and start your own small business doing something you really love – the only problem is, how do you fund it?
If you’re worried about finding the capital to fund a small business venture, you need not be so concerned because there are lots of realistic ways you can secure the funding you need. Here are just a handful of your best options:
If you have any savings, then using them to self-fund your business is probably one of the most, if not the most, realistic way to get your business off the ground. After all, you won’t have to fill in any applications or have someone scrutinize the entirety of your financial history just so you can do what you need to do to bootstrap your business.
If you don’t have any/enough savings to DIY your way to being a fully-fledged business owner, you could also use a zero interest credit card to get you started, bearing in mind that, if you don’t clear the balance before interest is added, it could be expensive, and get the same results.
Loans for Women
If you’re lucky enough to be a woman, then applying for loans for women to start a business can be a good way of accessing funds. Why? Because since they are exclusively for women, you’ve already cut out 50 percent of the competition, and because many of the companies which provide loans for women are much more willing to take into account various life circumstances than the average bank. It’s definitely an avenue worth exploring further if you happen to be female.
Friends and Family
Another realistic option, although one that many people are hesitant to follow, and which should really be approached with caution, is borrowing the cash you need from friends or family members.
If you do decide to go down this route, you should never borrow more than any one person can afford to lose, and you should draw up legal documents like you would if you were borrowing from a bank. It’s probably only a good idea to borrow the least amount of money you can to get things off the ground if you’re borrowing from people you care about, because of your business isn’t exactly the big success you hope it to be, at least you won’t have such a big fall-out.
Angel investors are typically entrepreneurs who were once in the position you are now, but who have subsequently done quite well for themselves and are looking to give something back. If they like your idea, and they think that you have a good business plan, they may lend you the capital you need to get started, and even better, give you lots of advice and introduce you to other professionals who can help you to succeed, into the bargain. I think every small business owner should try to get their own angel investor – they are so valuable in more than just monetary terms!
So, instead of worrying, start exploring these options, and you could be a small business owner much sooner than you think!