You have always dreamt of opening your own business and your boss has angered you for the last time. The… last… time. You’re going for it. Nothing will stop you from becoming your own boss. Well, except cash. You have a business plan; you wrote it in college. You just need to update it and finally take the plunge. There’s only one small problem. You don’t have enough money to open up your venture. Don’t worry; all is not lost. Keep reading.
1. Angels
There are numerous alternative financing options for business startups that will lend money to ambitious entrepreneurs when the big banks won’t. One such option is angel investors. Angel investors are rich people ready to help a startup out because they believe the new business will succeed. They will fund the venture’s startup costs in exchange for a percentage of the business’ ownership. Some angels will also want a say in managing the business, which helps you learn the ropes.
2. Assets
You can also use your personal assets to fund your business’ opening costs. If you have enough equity in your home’s mortgage, you might consider taking out a second on the property. Perhaps you have enough in your savings to invest in your venture, or you have other investments you could cash out. Many entrepreneurs use their own assets, such as credit cards and lines of credit, to finance their businesses, but be careful. Don’t overextend yourself and ruin your personal credit.
3. Crowds
Is your business idea good enough that people might rally together to fund it? If so, consider opening up a campaign on a crowdfunding website and solicit donations. Most business crowdfunding sites are niche-oriented, so find your niche and then write a compelling call for action. If enough people believe in your vision, they will donate money toward your startup costs, and the best thing about a crowdfunding campaign is you never have to pay that money back.
4. Grants
Does your business address a specific need in a specific niche in the country? Are you disabled, a minority, a veteran, or a woman? State and federal governments offer grant programs designed to help businesses get the money they need for their startup or other costs. Much like crowdfunding, if you are awarded a grant, you never have to pay the money back. The only caveat is you must spend the money as the awarding agency designates, so you’ll be limited in what you can do with the cash.
5. SBA
Finally, the U.S. Small Business Administration offers loan programs and comprehensive advice to business startups throughout the nation. Learn the difference between business classifications, insurance coverage, employment laws, and much more. Using an SBA loan for Jackson insurance and other needs can get your business off the ground. Following the SBA’s advice on numerous topics can keep your business running smoothly toward your profit and growth goals.
You can start your own business; you just need the funds and a ton of ambition. For the first few months (or years), don’t plan to sleep much or enjoy any days off. Once you’re established, pat yourself on the back. You did it. You finally did it.