So you have this amazing business idea, but don’t want to ask your friends and family members for a loan? This is a dilemma many entrepreneurs are facing. If your only hold-back is money, you no longer have an excuse. There are several ways you can raise funds to get your startup off the ground, without having to fall out with people. Read about some of them and use them to make your dream come true.
Government Funds
There are several federal and local funds available for startup businesses. Depending on your industry, you will be able to take advantage of them. You can get a low interest loan or a non-refundable cash sum, if you can write a good business plan and prove that your new venture will benefit not only you, but also the local community and environment.
Start Small
Another option is to start small. If you can’t afford an office or the rent of a meeting room, you might want to settle working from home and meeting clients at coffee houses for a while. This way, you can take the risks away, and avoid getting into debt over your business venture. After all, you don’t want to work to pay your loan back unless you have to. Another great option is to share space with other businesses, which will cost you much less than renting your own premises.
Get Startup Financing
If you need an initial cash injection to get your business going, you can also find specialist services offering startup loans and financing options. Check out the different equity financing options available for new ventures, and decide which option suits your circumstances and business model the best. You can call the total amount or get a cash sum and a monthly allowance to keep you afloat until your business starts generating profits.
Budget Long Term
It is crucial that you make sure you can afford running the business. If you are only including startup funds in your business and financial plan, you are not getting a realistic picture. You will need to pay for professional services, such as accounting, marketing, and printing your own promotional materials. Include these in your long term startup business budget, prepare financially for your running your business, and you will get a clearer idea of how much money you will need.
Get Angel Investors
One of the latest and most popular ways of raising funds for businesses is presenting your plans to angel investors. There are several websites that can connect you with business owners and investors who have the funds you need. If they like your business plan and believe in your ability to return their investment with interest, you can get them on your side.
There are plenty of ways you can raise funds for your new business without having to ask your family members for a loan. If you would like to keep your family and business life separate, these solutions might be perfect for you.
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