Now, how will you fund your great idea?
Let’s say you just had the best idea for a unique and potentially profitable small business. You’ve laid out your business plan, and you probably have more than enough ideas for branding and marketing. The next most important step for your business is to get it funded. And for some people, this is the most difficult step.
It’s a given fact that starting a business involves a lot of risks. Thankfully, you have several options for funding. On top of that, you don’t have to stick to just one fund source. With that said, you need to be flexible, watchful, and willing to take risks if you want your business to grow.
Take a look at the following ways that you can fund your small business:
Almost all entrepreneurs spend out of their own pocket to start their business. If you just need seed money to get your business off the ground, then saving up for it is the most practical way. You don’t even have to dive right into starting the business. Set a realistic goal for your business and start saving for it.
Borrow money from family or friends
Filipinos are family-oriented people. Often, our family and friends are the ones who believe in us and are more than willing to help us reach our goal. This is why borrowing funds from friends and family is a common way to initially fund your business. Make it official and formal by putting it into writing, including repayment terms and dates.
If you have a unique idea that solves a problem, you can rely on crowdfunding on the internet. A lot of now successful projects and businesses got their seed money through it. Having a solid business plan is important when raising money through crowdfunding, as well as getting all the necessary materials out to sell your idea. People want to know if their donation would be worth it. And who knows, your business might even attract bigger investors.
Bank or government loans
Banks are a reliable source of funding for businesses. You can apply for various loan plans that can suit your needs. However, take note that most banks also charge high interest rates for loans. Failure to pay loans on time can incur more debt and be damaging for your business in the long run. You can also choose to apply for loans through government agencies. Some government agencies may require a minimum financial contribution in your personal account before you can file for a loan.
Remember, you don’t have to stick to just one source of funding for your business. The best entrepreneurs out there can work best with what they have and also make a flexible plan for all scenarios.
Which of these would you like to try to fund your business? Sound off below.
Now, co-work and rule the world!