How To Fund Your Business Startup
For many people, the hardest part of starting a business is getting hold of the funds to launch it. Whilst it is possible to start your business on next to nothing, you will still need a small amount of money to get you going. To work out how much money you realistically need, you need to calculate your startup costs and then add on any money you will need to cover your personal costs. For example, bill costs, rental fees and food costs.
The amount of money you need may seem like an impossible amount, however each year thousands of people find the money to start their own businesses. If you are wondering how they find the money to get started, have a read of this.
Start on a part-time basis
If you need a reliable income to meet yours and your family’s financial needs then it may be a good idea to initially start your business on a part-time basis. Don’t leave your full-time job until your business brings in a reliable and livable income. Although it may take you longer to get up and running this way, it will guarantee you financial security for yourself and your family.
Startup from home
One of the most expensive costs for new business owners is renting out office space. If you are willing to work from home, you can start your business for a much lower cost. Although you may not want your clients to know that you work from home, it is an excellent way to cut down on your startup costs. So that you have a business address to attach to your business, you could hire a virtual office space. This is low cost and allows you to have a non-residential address linked to your business, giving your company a more professional image.
Take orders in advance
Before leaving your job and taking your new business full-time, use your connections to line up at least two or three reliable sources of business. You could approach companies that you have previously worked for as a source of work or even as a source of funding. Larger companies that outsource most of their work may be happy to send you over a regular stream of work. This is a great way to build up a reliable income whilst starting up, as well as adding to your client base.
Get a part-time job
If you don’t have enough money to start up your business, then you could apply for jobs that would allow you to work on a part-time basis around your new venture. You could either save your funds and put them towards your business or run your new business alongside your part-time job and use your wages to tide you over.
Apply for a business loan
If you don’t feel like you can raise the money yourself, then it might be a good idea to consider applying for a small business loan. Applying for a business loan can be quite a complicated process, you will need to provide evidence of your income, savings etc. You may also be required to produce a business plan and target map for your new venture. Banks tend to be quite wary about lending money to business startups, so be aware that they may turn you down.
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