Hello readers, you might have read on how to finance your business somewhere or you are just reading this for the first time. The information in this article is worth more than $500 and you are so lucky to be getting it for free. I have been in your shoes, have searched for ways on how to finance my business only to come across articles that got me confused and frustrated. I did have to use the last money in my bank account to purchase a book before I could be able to finance my business. Most of the EBooks and articles out there won’t teach you how to finance your business; don’t be deceived by their headlines, they would only explain a little on what to do. But not to worry, someone has worked his ass off here learning how to and he is ready to put you through, isn’t that amazing? This has worked for me and it still does. You don’t want your business crashing like an airplane that got struck by a lightning, do you? If you want to be a successful business owner, then this article is for you.
Bank Loans: If you are really passionate about your business and 98% sure you would be making profits the minute you invest into it, taking a bank loan is what you want to do. You might have read somewhere or been told by a friend that bank loans have high-interest rate—banks only give out loans to businesses with an operating history, that’s a fallacy. Banks gives loans to start-ups and business owners with low interest-rate. Before you take a bank loan, I want to inform you that various banks have requirements you must meet. If you are able to pitch your business very well, the bank might end up investing in your business. Who doesn’t want to invest in a profitable business? You might also want to weigh your options by checking which of the banks suites you.
Get an Investor: You must know how to pitch your business before going in search of investors. You might have read or heard about some successful business owners saying they never had a business plan when they started—you might want to get your business plan written by an expert. Your business plan is what any interested investor would want to check out first before taking any other thing into consideration. Make sure you are not selling out your business to an investor. Some crazy investors might want to invest a huge amount of money into your business for 50 or 60 % of your company. The ball is in your court—make sure you don’t end up doing what you would regret while looking for investors. No investor would want to invest into a business managed by people who have no idea on how to run a business. Getting a sales team is very important; you might want to start employing some professionals.
Approach Family and Friends: Approaching family and friends to finance your business is one of the best ways to finance your business. Repaying loan is always flexible, zero interest rate in most cases, they might not be requesting for any collateral. Knowing how to approach them is as important as the cash you need to finance your business. If you pitch properly and communicate with them like real investors, you would receive a positive response. You will receive advice from them if they cannot finance your business. You might get lucky and be referred to someone who will be interested in supporting your dreams. I borrowed few dollars from a cousin to start my lifestyle blog which in turn made me a whole lot of money. You should try this if you haven’t.
Slide into your Savings: Before you start your business, it is very important to have enough money saved up somewhere. This is the easiest and smartest way to finance your business. Although you are limited to the amount of money you have saved for a period of time—a more reason why you should have enough savings before you start your business. A business plan would give you an insight on how much you need to keep the business up and running. Financing your business with your savings will keep you committed. Investors will invest in your business after they have seen how committed you are. Is this business profitable? Who are my competitors? What is the way out if the business collapses? How much more do I need to keep the business running for the next 10 years? All these questions need to be answered before you dip your life savings into your business. You don’t want to end up losing all your savings, do you?
If you don’t meet the requirement for the bank loan, you might want to search for a co-signer who has the requirement to take up a bank loan. A co-signer is one who applies for the loan with you and accepts to pay the loan if you fail to pay up. Getting a loan will be very difficult if you don’t have a steady income, collateral or a requirement the bank needs. You don’t want to put your co-signer in a big mess, do you? You have to make sure you use the loan for its purpose and not for some irrelevant things. One of the risks in financing a business is taking a bank loan.
In all honesty, finance is one of the most essential resources you would need for the growth and survival of your business. These methods of financing businesses have been proved to be working by professionals. Every C.E.O at one point has been forced to sell his nice car or an airplane to keep the business up and running. You might want to look at selling some of your valuables to finance your business. You should always make sure you consult a legal and financial expert before engaging in a business financing transaction.
Do you know other ways of financing a business? Kindly use the comment box. We would really appreciate it. At the same time, if you have any questions, we would happily answer it.