Starting your own business can be difficult mainly because of the lack of funds. However you should not let this become a permanent block on your future as a business owner. No matter what kind of business you would like to start it IS possible. Here are some idea’s for raising the money to start that business.
What is the profession of the business you were planning on starting? Try getting a similar job and try to save as much as possible in a high interest savings account towards your new business. The downside of this is that it may take one to two years to accumulate enough money to actually open your own business. On the bright side. You are gaining valuable experience on what should be done in your own business. Try paying attention to the management and how employees are handled. This will help you greatly in the future.
Take your business plan and a full financial expectancy sheet to your bank. It helps if you have money in the bank and you MUST have good credit for this. Ask for a loan that is enough to get you off the ground. It is important to pay attention to the details of the contract because they may include forfeiting your property if your loan is not payed in time. You will probably have to put your house or car up for collateral so be sure you can pay. This gives you enough money to start you business immediately but be careful, without proper management and revenue you will be unable to pay your bank back.
If you do not have enough money to start a business try starting one with a partner. Either you both split the money and the work or you do the work and he provides the money while you both share the profits. If you enter into a deal such as this be careful that the split is even. If your partner would like a share in ownership and management you should stipulate that they do their share of the work as well. Be warned that many business’s like this end with one partner leaving. If you can not support the business on your own after it is set up, you may want to think twice.
This is one of the most lucrative methods of getting money to start a business. Try going around to the local fairs, festivals, etc and selling your product or food to the crowds. You are almost guaranteed to make money if the festival is a large one. Especially if you sell food. If you do not know how to do this buy a small tent and sell grilled hotdogs and hamburgers. Before you know it you will have enough money.
If you own a house that is not mortgaged already, it is possible to mortgage it and use the money to open your business. This is a somewhat dangerous option however as if your business fails you could loose your house. Choose wisely when doing this but if you believe in yourself and your future business then this option is for you.
Remember, even after opening, a business still requires a great deal of money. Try to keep putting money back into your business. Whether it is for crucial advertising, repairs or adding new products. Without upkeep, your business will soon fail and you will be back at ground zero. Proper management and care are crucial elements to having your business be one of the ten percent of business’s that make it past their first year.