5 Tips On Funding Your First Business
It’s not a joke to start a business, especially if this is your first, ever entrepreneurial venture. You have so many things to consider. You need to target a specific niche market, decide whether or not the business will net a respectable profit and have enough room for expansion and of course, and other aspects that could make or break your spirit. On top of this, you need to have adequate capital to realize your business plans. Ideally, this should be enough to keep the business going for several months or up to a year, until profits begin to rise and you start to recoup your investment. It’s one herculean task indeed but you can make it. Read on and find out the best funding tips that any start up entrepreneur must put to mind.
- 1. Assess Capital Needs
Just how much do you need to start a business? This is what you need to figure out when drafting your business plan, an important document which contains your business’ goals, strategies and the projected cost to execute your plans. The amount of money coming into the firm’s coffer minus the cash needed to keep it going and achieve its goals represents your working capital, which you have to generate.
- 2. Bootstrapping
Of course, not all startup entrepreneurs have enough money to spend on their fledgling businesses. Perhaps, bootstrapping could be an excellent option. Under30ceo.com explains that bootstrapping is funding your business right from your pocket. If you’ve been working on a day job and you have a few thousand dollars on your savings account, then, you could use this as your working capital. Although it will take time before your business starts to picks up, it frees you from the pressure of borrowing money or preparing a dozen pages of business plan.
- 3. Save as much as you can
Budgeting is something that not so many of us would love to do. But any sensible entrepreneur needs to be budget-savvy to keep the business floating. For example, you want to refrain from hiring employees if you can do the job, or renting office space if you can have a spare room at home.
- 4. Borrow from your family
If you are in grave need to raise cash, instead of knocking on the banker’s door, you may try to seek financial assistance from your family. Though difficult at it may seem, family members are actually excited in the prospect of investing in your business venture, although you have to be sensible enough to foresee the risk. Limit your loan to a level that you can pay off the soonest possible. Make your loan personal, rather than commercial, so if ever your business folds, you could still save your face and pay your debts.
- 5. Get connected and be persistent
It pays to get connected and stay connected within the business community. So, join business clubs, chambers of commerce and trade organizations. It’s one way of tapping possible investors to your business. Of course, a startup entrepreneur will always have to brave the rough seas. No matter how hard it may seem, just don’t quit. If in your first time, you missed hitting the mark, try to tap other sources of funding, like angels and angel groups and venture capitalists. Stay focused on your business’ goals. Be bold and daring and you’ll be happy enough to seeing your business achieve success.
About the author – Manilyn Moreno is a writer and caterer. She contributes articles about cooking, event planning and hosting. She also shares tips on how to effectively manage the costing of a catering business. For more information about catering software, please visit their site at http://www.bettercater.com/.
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