Starting a business requires more than a trendy name and a warm market-you need capital. As the owner of a cosmetic business and part owner of a construction business, I can tell you first hand, enthusiasm and gumption will only take you so far. Whether providing a service or selling a product, funding will play an important role in getting your startup off the ground. Think of funding like the root system of a plant, without it you nor the plant will last very long. Try these ideas for getting your hands on startup funding.
Loans from Family
When I needed inventory for my cosmetic business, I went to my family for help. After a messy divorce, I had little cash and shabby credit. Luckily, this option paid off. I needed several thousand dollars to purchase inventory but I knew no single family member had this amount. I prepared a sensible business plan and approached three family members about borrowing the money. I gave specific timelines about when I would return the money. (Never accept money with vague details.) Two family members were able to loan me what I needed to get started. I paid them back with a little extra.
Yard sales are not what they used to be! Today, many families supplement their incomes by selling extra things from the home. If you have quite a bit of “stuff,” this could be an option for you. Sell exercise equipment, furniture, furnishings and vehicles to get the money you need. Always get cash. Never accept checks at a yard sale. I learned this lesson the hard way. Get professional with your yard sale by advertising online or by using free online classifieds to get the prices you want. You’ll be surprised at what you can earn and add to your startup capital.
Small Business Loans
If you have decent credit you may qualify for small business loans. Prepare a business plan and know exactly how much you need for your startup capital. Your business plan should include details about where your money will go and a business forecast. Apply at your local bank or credit union. Be aware that there are scam artists that make money by convincing you that you need an “agent” to get a loan. You don’t! You can go directly to your own bank and ask for the appropriate paperwork. Most banks want to give loans and will guide you, for free, through the application process.
Finding the startup capital you need for your business may be challenging but you can do it. Be persistent and share your dream with everyone who will listen. Eventually you will have what you need to make your business dreams come true.