7 Places You Can Get Startup Money for Small Business
Raising startup money for small business isn’t always an easy feat and is one of the commonest hurdles most prospective business owners face.
One of the toughest parts of starting a business is getting fundings or credit facilities. Most times, people come up with great, viable ideas of businesses and draw up a business plans on how they hope to actualize the business dream and achieve success, but a lack of startup fund soon sees these business ideas dying a sudden death.
Funds are the lifeblood of any business and without it, your business, if you can get it off the ground, won’t see the light of day before crumbling like a pack of cards.
If you’re looking to start a business, here are
Seven Places You Can Get Startup Funding for New Business:
1. Get Startup Funds from Personal Savings
When I decided to leave paid employ in 2011, I knew I was taking a great risk into an uncertain future and so to mitigate the risks of this decision, began to save from my salary each month.
I did a costing of the total amount I would need to float my new business and then added a little more (for emergencies and to survive on) as I would need this while my business grows.
This amount saved, my business was ready to see the light of day and I was confident I had mitigated the risks ahead me.
Personal savings is usually your best choice to raise startup fund or capital for your business. It is so good in that you aren’t required to pay back interest if you were to take a loan, which wouldn’t just put you under undue pressure, but would also end up eating into your profit.
This means , if you are looking to start a business soon, you should start putting money aside gradually, until you have accumulated enough startup fund to not just launch your business, but to also serve as operating cost and tide you over while the business goes through the teething stage.
2. Get Startup Funds by Selling Off Old Items
A good way to raise startup money for small business is by selling off old items you no longer need or use. Sadly, quite a number of people aren’t too open to it and let this simple money-raising means go to waste.
I suggested this business tip to a friend thinking of starting a business and he was aghast as he couldn’t think of parting away with items he tagged ‘dear’.
Let’s not forget these were items he seldom uses.
Selling off old or seldomly used items on eBay or directly to end users would bring in the much needed capital for his business and he could very well replace them later on if he desired.
Selling this items you no longer use is a great way to raise seed capital for your business and like personal savings, it also comes with the sweet advantage of being interest-free, a fact which is enough motivate anyone.
3.Get Startup Funds from Friends and Family
If you don’t have a personal saving or are against the idea of selling off personal property, then turning to friends and family to get the startup fund you need is another idea you should consider.
Most family and friends have our best interest at heart and would likely be willing to help out if it’s within their capability to do so.
However, you must have proven yourself creditworthy to even be considered. No one wants to give money to someone with questionable money management skills, as doing so would be equal to pouring water down the drain.
4.Get Startup Funds from Cooperatives
If you’re a member of a cooperative, then you can take advantage of this membership to get the much needed startup fund for your business.
One good thing about cooperative loans is that the interest rates are usually on the low side with much consideration given on the repayment time frame.
This is a good reason to look into this option of raising your startup fund so you can get your business off the ground.
5.Get Startup Funds by Entering a Partnership
If you wouldn’t mind co-owning your new business, then you should look into entering a partnership with an individual or body buoyant enough to finance your business idea.
However, while this method of raising startup fund has been known to work time and time again, it’s usually recommended you get everything tied up legally from the beginning; draft out in clear terms how much equity your partner will have in the new company, that way, there aren’t any unpleasant surprises springing up in future.
6.Get Startup Funds by Taking a Bank Loan
A lot of people shy away from bank loans, thinking the capital too high, however, these loans are a great way to get the startup fund you need.
However, if you’ve done your due research and stick with your business plan, you should make enough profit to sufficiently pay off your loan and still have running capital to keep your business afloat.
7.Get Startup Funds from Private Loan Bodies
Private loan bodies are great and you can get your startup fund in 24- 48 hours, even without a collateral.
The little down-sides to using this option is that, like bank loans, they also charge a fairly high-interest rates and sometimes give insufficient time before moving in to recoup on the loan.
However, with proper planning, you can do much in the short time given and meet up with the
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