Diana Smith
Before your business starts actively making money, you will have to make some serious investments. The greatest problem here lies in the fact that people with great business ideas often have no way of providing enough resources. Even though your business will more than return these amounts several times over, where do you find this starting capital? Here are several options for you to consider.
Selling an asset
Instead of offering your asset as a collateral, why not sell it in order to invest in your enterprise? Think about it rationally, selling a car in order to start a business is a great idea, due to the fact that once it becomes profitable, you will be able to buy the car back. On the other hand, unless you decide to start working part-time as an Uber driver, there is no way that your car will generate this kind of money. Even in this situation, it will take more than a few years. If the amount you need is a bit more modest, you could even get away with selling jewelry, while if you need a bit more, you might opt for selling a real-estate you own.
Find a partner
Needless to say, a lot of people aren’t comfortable with selling their vehicle or home, especially since there is no such thing as 100 percent risk-free investment. Therefore, they decide to split some of this risk and solve most of their problems regarding business financing by finding a partner. The advantage of this business decision is that you get someone to share administrative tasks with but the downside is that you may no longer have the final say in the decisions regarding your company. Keep in mind, though, that someone who shares your interests doesn’t necessarily share your vision.
Go with crowdfunding
In 2017, there are so many crowdfunding platforms out there, such as Kickstarter and Patreon, where you can present your idea to the world and ask for donations. This will allow people who believe in your vision to help you out financially. Seeing as how the donations you are asking for seldom exceed several dollars, people won’t have a problem donating. In other words, you aren’t aiming for the size of these donations but their number. Still, it all comes down to how well you can present your idea to wide masses. For instance, one guy managed to gather $55,492 for a potato salad while some people outright failed with some legit business ideas.
Apply for a business loan
Finally, perhaps the most conventional, yet the simplest way of solving your startup-related financial issues is applying for a loan. The greatest problem with this idea lies in the fact that you may not have any collateral to offer or a flawless credit rating to hide behind. Luckily, some credit unions have taken a different approach to this situation. For instance, some providers of short-term business loans from Sydney focus on the evaluation of the performance of a business and approve loans based on this metric rather than just looking at the credit score of the owner.
Of course, there are many other viable ideas such as taking a personal loan from a family member, friend or acquaintance or even selling an equity in your company. Nonetheless, the above four are usually simpler and more efficient solutions, seeing as how they allow you to keep most of the control over your company and prevent your business from ruining your personal relationships. Either way, where there is will, there is always a way and you should never allow a minor financial setback to prevent you from achieving your long-term business goals.
