You may have decided that starting a new business is the right thing for you. You want more freedom and you want to make money for yourself and your family rather than some big boss man, but you have one problem; you need to be able to finance your move from being an employee to being your own boss.
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If that sounds familiar, we have a few ideas about how you can raise the money you need to start your new business venture. Not all of them will be suitable for all of you reading this, but hopefully, you’ll be able to find at least one form of finance that will work for you.
Savings
If you have any personal savings at all, this is probably the simplest way to finance your new business startup. I understand that you may have been keeping that money for a rainy day, or that you like having it in the bank as a cushion in case your financial situation suddenly takes a turn for the worse, but if you’re serious about finding financial and career, freedom by setting up your own business, you are going to have to be brave, and actually using your savings is a pretty safe method. Why? Because even if you were to end up plowing all your savings into an unsuccessful business, at least you would not be in debt!
Remortgaging your home
If you are a homeowner, another method of financing your business that you could consider is using a refinance home loan to get the funds you need. This is obviously one of the more risky methods available to you, so you probably should not consider it until you’re sure you have a good idea, a solid business plan, and plenty of market research to suggest that your ideas will be a success, but if you are confident, it could be the answer that you are looking for.
Credit cards
Credit cards can be an effective solution for anyone who is looking to start a new business. They will improve your cash flow so you caen pay suppliers and get your business going, but they are unlikely to be a long-term solution due to the fact that you will eventually have to start paying interest on your purchase.
If you do decide to start your own business with the help of credit card spending, try to find a card that offers a 0 percent interest period on purchases, so you can at least start out without the burden of interest for a little while.
Crowdfunding
If you have a really good idea for a new business, you could potentially convince hundreds of people around the world to invest in your idea and allow you to set your new company up via the medium of crowdfunding. Platforms like Kickstarter enable you to pitch your business/product idea to people all over the planet, and if they like it enough, they’ll send you a few dollars. In return, you need to offer them either a free product at the end of the process or some other incentive to invest. If this sounds too good to be true, just take a look at all the successful businesses that have launched thanks to crowdfunding campaigns in the past. This can be a really good, mostly risk-free way of raising the money you need.
Friends and family
A lot of budding entrepreneurs have been able to fund their startups thanks to the help of friends and family in the past, and this may be an option for you too, but you should think very carefully about this option because lending and borrowing money from people you are close to can lead to conflict if you aren’t careful. If you do borrow in this way, be sure to write up an official agreement and a repayment timeline so everyone knows where they stand and what is expected.
Angel investors
Angel investors are individuals who are looking to invest their private funds into companies and entrepreneurs they think have potential. As well as offering money, they often offer practical advice and support too. If you want them to invest in your idea, you’ll need to create an excellent pitch, but if you can get them on-board, their knowledge and expertise., along with their cash, could help you to grow your business fast.
If you’re serious about starting a business, you can make it happen, you just need to be determined, explore all your options, and secure the right finance for you.
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