Many people dream of starting a business of their own. Some people come up with a unique idea, product or service and want to market it to the world, while others just enjoy business in itself. Owning and operating a business can be rewarding, but it also comes with struggles along the way. Even the simplest and smallest business can end up costing quite a bit just to start. I found this out for myself when I decided that I wanted to start selling my cloth diapers and baby carriers! The start-up for my business was relatively small when it comes to start-up costs, but when you’re a stay-at-home-mom with no other source of income, these costs add up quickly and take some effort to cover! I needed materials, supplies, equipment, packaging, and more! I felt so overwhelmed to begin with, but took it in stride and looked at my options before stressing myself out about start-up costs!
This is probably one of the better ways to fund your business start-up costs. If you have a personal savings account large enough to cover your expenses, this route is ideal. If you use your personal savings, you won’t have to deal with owing lenders, either personal or professional, any money. The downside is, if your business start-up takes a huge chunk of your savings, it could leave you high-and-dry in personal emergencies where you might need that money.
Family & Friends
If you’re struggling to find the funds for your start-up costs, you may be able to convince family and friends to invest in your business. This can be a great option if you’re unable to personally finance your business endeavors. Be careful utilizing the help of family and friends though, because if your business tanks and they aren’t able to get a return, or even break even on their investment, this could cause your relationship with that person to be strained.
You might consider using credit cards to fund your start-up costs. If it’s equipment, materials, supplies or inventory you’re needing then using your credit card may be tempting. However, it’s best to avoid using credit cards unless you know you’ll be able to make your payments in a timely manner. Don’t count on the business to be able to make the payments because it might not take off as quickly as you expect, and your credit card payments won’t wait for you to hit it big!
Sell Some Stuff
If you’ve got things around your house that you know you could live without, consider selling them to fund your start-up cost. Try selling your things in a yard sale, on Craigslist, eBay, or your local newspaper classifieds. If you put forth the effort, you’ll probably end up with a decent chunk of cash. The benefit to this method is that you won’t owe anyone anything if your business doesn’t do as well as you’d have hoped.
Take Out a Loan
If you’re unable to fund the start-up yourself, and can’t or don’t want to ask family members and friends for help, you might consider taking out a business loan. If you’re interested in a bank loan, you need to pay a visit to your local bank and schedule an appointment to speak with someone in more detail about the services and loans provided. If you’re not looking for as high of an amount, you might consider using a website such as Prosper, to obtain a smaller, private loan.
Tap Into Your Home Equity
If you own a home, and have a strong credit rating, you might consider tapping into your home equity. This could help you cover your start-up costs, however, it increases the amount you owe on your home.
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