Finance your business startup with these ideas.
There is nothing hard about coming up with a new business idea. The difficulty isn’t in thinking of an idea, it’s in implementing it and making it come to life. When you pull it apart, getting a business idea off the ground is more about the finances than anything else: without finance a business idea fizzles out into one of the greats that might have been! You can literally choose any person from anywhere and ask them what they think a good business idea would involve, and they’ll have something for you. The thing is, we’re not all rolling in cash for our adventures because of the one common issue: money!
Running a business takes a lot of skill, a lot of time and a lot of strength. Anyone can consider an idea for a business, but it takes a specific kind of person to be able to think long-term about their finances and make it work. The good news is that there are options out there – like Bank Guarantee – for anyone who wants to have a go at making that excellent idea their new business reality. There are people and places that can ensure that you get the financing that you need, and once you understand them, you’ll be ready to get your business off the ground and flying high. One of the biggest challenges that you will have, however, is financing yourself. Below, we’ve got some of the easiest ways that you can get your hands on the money that will bring your business idea to life.
1. Speak to the bank
The first thing that you should always do is speak to the bank before you dive into other financial routes. It’s not easy to get a bank loan, and every business owner knows that! If you have a great credit score, you might not have an issue securing a bank loan, and if you’ve been punctual with your taxes, you also might not find it much of an issue to get the finance you need from your bank. The key here is doing some research to ensure you’re asking the right banks!
2. Apply for a business credit card
Did you know that you can get your business credit card application going and get your business finance started as a result? They’re much easier to get than straddling a large bank loan so if in the early days your capital isn’t much, to begin with, you’re going to manage better when you have a business credit card working for you. Just stick to the payments and make sure that you are never late!
3. Have you thought about venture capitalists?
These sharks belong to a range of industries and they often step in to make offers of finance and will often invest in your business with you. They will be able to help you to bring your business about and that gives you a chance for a future. Venture capitalists are keen to finance those who will be big shots one day, so if you have something about your business, they’ll put cash into you.
4. Check out peer to peer lending
It’s a relatively new thing, but if you have a good credit score, you’re going to be able to check out peer to peer lending with confidence. You can get the loan you need pretty quickly when you check out peer to peer options, and it’s a great idea if you want to avoid the traditional lending routes.
5. Call upon the angels
The investors, we mean! Angel investors are there for you in a time of need, and they can help you to finance your business and get your business off the ground. You can find angel investors on a range of different platforms, and if you want to attract investors to your business you have to present your business idea in a way that makes good sense. The presentation really does matter here as you want to be able to have the best of the best in your business.
6. Speak to your close friends and family
Money and family don’t always work together very well, but if you have friends who are privileged enough to be in a position to support you, then it’s worth asking. You can approach them as you would a potential investor and offer them a stake in your business. It’s a good way to see whether you have anyone around you who can back your business.
It’s not just for pleas of health help online these days, you know. Crowdfunding can work very well for a business, and there are platforms like Kickstarter that will help you to see that you can get the right support. The platform that you choose to use will take a percentage amount from the funding you obtain, but it’s going to be worth it as you will still end up with more cash to use for your business. This is the type of finance that can bring people together!
8. Consider the SBA
A small business association loan is a great option as you can get a flexible loan with a very low-interest rate. The thing is, this is a very difficult way to get a loan because they have strict criteria. You should do some research to see whether your loan is considered to be small enough before you apply. You don’t want to be knocked back and hurt your credit rating on a guaranteed ‘no’.
9. Have you thought about a microloan?
Some businesses may not need much capital to get started. In fact, they can use a much smaller loan to really pack a punch on their first venture as a new business. Microloans can be gained from specialist lenders who work with small businesses specifically.
10. Contact your local government for federal grant options
If you have an idea for research or your business is in a scientific field, a federal grant could really help. You can speak to the SBA again about this, and representatives in your local government will be able to help. The drawback here is that you have to avoid sharing your ideas as much as possible. A part of getting a federal grant is sharing your idea and all of your secrets, which can leave it vulnerable to the idea being snatched, too!
11. Enter contests
Did you know that there are business contests that can be entered? Sometimes, the prize money for these contests can be in the thousands and it’s this kind of prize money you can’t say no to. There are plenty of business owners out there that enter competitions because they’re usually free to enter, and the prizes are usually tiered so there are plenty of winners. The money in some prizes may not be as high as a huge bank loan would be, but it’s this that can make a huge difference to your startup at first.
12. Don’t give up your day job
One of the best ways you can finance your business idea is on your own. Giving up your day job takes away a whole source of income that you could be using for your business. Instead, keep your job and use the salary to pay for the new things that your business needs. You can save and have a fallback if your business doesn’t work out the way you anticipated it might. You can do all the planning in the world but if your business idea isn’t well-received, then the planning won’t matter and you could end up out of a job as a result of moving too fast.
13. Sell an asset
You could raise some capital for your business by selling something you no longer need to finance. From a spare car you don’t really use to a boat, you can invest in yourself by selling something of your own to fund it. Your business may end up propped up by car funds or the funds that come with antiques, but you will be able to grow something bigger and better than you thought possible.
14. Pledge the future
Did you know that you can pledge future earnings? When you pledge just 10% of your future savings, you can get a lot of money right away. This is a good business finance option but only if you are confident about the earnings you will gain and when you’ll gain them. Otherwise, you’ll be paying out a lot more than you could expect.
15. Get a second job
If you really want a chance to finance your business properly, consider the side hustle. A second job is going to be what you need to finance your business while you use your day job to keep your everyday expenses going. Whether you like to bake or you’re into trading art, you can get a second job doing whatever you like as long as it fits the need to earn more money and finance your dream.