Funding is the main impediment in surviving the first year in business. In lines with a U.S. bank study, 82 percent of businesses fail due to cash flow problems. Unless you’re sitting on a huge capital bubble, you’ll find out almost immediately that you need to inject money in your business on a monthly or even weekly basis.
It goes without saying that you are reading this because you have no clue how to get some money in your company without jumping through too many fiery hoops. We’ll provide you with 5 methods of doing just that.
1. A business loan
There are three main types of business loans you should definitely consider getting: online loans, personal loans and installment loans. Of all of these, the handiest are the online loans.
You simply go on a site like NorthCash Loans and fill in a form. You can get sufficient money to maintain your company in the blink of an eye. And moreover, the requirements are much easier to meet. Nevertheless, before applying for such a loan, you should analyze your financial situation. In this way, you can be certain that you can meet the repayment terms.
2. An investor
If your business is eligible (there’s strong proof it’s going to break the market once it makes landfall), investors will be extremely interested in providing you money. Of course, they do it for profit they’ll gather later on.
It might not be necessary to look for an investor. If you had good marketing and advertising, he might approach you. That’s not set in stone, though, so don’t wait up if there’s no sign of an investor.
Crowdfunding is a funding method that supposes people investing in your idea on the Internet. The money is non-refundable. Websites like Kickstarter, for instance, allow anybody to start a crowdfunding campaign.
If your business is unique, you’ll be amazed how quickly people are willing to offer their help. Pay attention to the fact that you’ll have to pay a fee for using the platform (though not necessarily).
4. Borrowing money from acquaintances
Your family and friends can be a source of funding. By borrowing money from close people, you won’t stay awake at night thinking if you won’t end up in debt. Plus, you can negotiate pretty much anything borrowing-related.
The thing is, if your family and friends don’t trust your company, other potential investors might do the very same thing.
5. A government grant
Many start-up businesses are founded by the government itself. Obviously, there are many aspects you must take into consideration and you must see whether or not you are eligible for a grant in the first place.
Look for government grants on the Internet. There are archives were all available grants can be found.
Funding a start-up is no piece of cake, but it’s doable if you know where to look for money. People usually go to the bank, but the costs make bank loans anything but a good idea.
Now you have not one, but 5 possible solutions to your troubles. We know how difficult is to have a young company. But don’t worry, Rome wasn’t built in a day. Stay focused and determined and your business will bloom.