All businesses start somewhere and even today’s most lucrative and world-dominating companies had small beginnings.
Online giant Amazon was founded in the garage of Jeff Bezos’ rented property just a few short decades ago and The Walt Disney Company certainly had humble beginnings in a small office in LA back in 1923.
While that kind of success is something most entrepreneurs can only dream of, it reminds us that no matter how broke you think you are, if you have a business idea, you can go the distance.
So, if you’re wondering how to get your business idea off the ground and you’re struggling with your funds, check out these simple ways you can start financing your business idea, today.
What you can expect in this article:
Avoid loans and bootstrap!
Bootstrapping is a term that means you utilise every penny of your personal funds to fund your business idea.
This means utilising your savings accounts, your credit cards (without jeopardising your financial security), savings accounts and ISAs – check out Wealthify for more information on individual savings accounts.
This approach is better suited to those who don’t want to bring in a third party to source your funding.
Having to juggle large loan repayments and high-interest rates all whilst you’re trying to turn a profit and create a healthy bottom line can seriously undermine your revenue.
This tactic isn’t suited to every business type, but if you’re wanting to start things cautiously then it may be appropriate.
Ask friends and family
You wouldn’t be the first entrepreneur or the last to ask their friends and family for a little financial help.
While your relatives might not be able to inject hundreds of thousands into your business idea, they might be able to help you get off the ground with a more modest amount.
But, before you phone your dad and ask him for money, make sure you’re prepared.
Having a business plan, projections, how you’re going to make money, the products you’re going to sell and where you want to be in the next couple of years is essential.
It shows that you’re already mentally invested in your idea and you’re taking it seriously.
Think about a loan
You should only consider a loan if you’re in a position to pay it back and handle the interest rates that come with it.
Many entrepreneurs turn to loans when they’re already making progress with their business and they’re looking to take things to the next level.
Always do plenty of research before you consider taking out a business loan.
Are you familiar with Crowdfunding? This is where you can market your idea online and then donors (or investors) donate certain sums of money towards your business to help you get it off the ground.
Crowdfunding is also a simple, yet effective way of getting an initial response to your business idea. If it’s proving popular, then people will donate!
If you have a small entrepreneurial idea, don’t put it off any longer. Start thinking about your business plan today and where you’re going to get your initial funding from.