You have a great business idea. You know where you will purchase your products from at an affordable price. You know exactly how to market all of this effectively. So, what is the stumbling block? Well for many, that stumbling block comes in the form of financing this idea.
If you find yourself in that sort of position, you know how it can cause untold frustration. There’s no doubt you are raring to go and eager to get everything underway, but a lack of funds means that it is a non-starter right now. However, there are various ways in which you can acquire those funds, and this article will point out some of the best choices available.
Get an angel investor
Assuming they approve of your startup idea, an angel investor is someone that will provide financial help and their own business experience. Although, do keep in mind that it will be difficult to convince an investor to choose your business proposal – especially with the economic turmoil in recent years. Plus you will have to spend plenty of time creating a business plan, and a lack of showable experience – i.e. a business that is already up and running – will also make them cautious.
Go with crowdfunding
In recent years, crowdfunding has become a popular method for a new company to gain the money needed to get started. While it is a good way of promoting your business in a sense and is a realistic way of getting funded, there are issues with this method. Firstly, you will have to invest a sizeable amount of money to have a presentable campaign. On top of that, and assuming you’re successful with the crowdfunding, you will be inundated with numerous orders to fulfill. If you miscalculated anything such as shipping costs with these orders, this could come back to bite you and leave you in the red overall.
Use a credit card
If you have the credit available, it can be tempting to go with your credit card to finance your business idea. However, there are pitfalls by going with this option. Mainly that you are highly unlikely to get your money back straight away (you are financing a business after all!), which will mean you will be paying off extortionate interest rates for an extended period of time.
Obtain a bank loan
Going to the bank to secure a loan is a long shot, but it is always worth a shot. If you manage to secure a bank loan, interest rates will typically be low in comparison to other options. Nevertheless, and considering the aforementioned economic downfall and/or if you have bad credit, getting a loan this way is difficult for a startup company.
A loan despite bad credit
It is clear that bad credit can be damaging to your prospects of attaining the cash required to start your business – as pointed out in the previous section about bank loans. However, there are firms out there that will provide a loan even for those afflicted by bad credit.
The 1000 loan, which supplies 1000 dollars to your bank account, is an ideal way to finance a business idea that requires limited funds. That way, as opposed to slowly trickling up to that amount over a number of weeks/months, you will have the money immediately and can get started with your new venture as soon as possible.
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