Financing a new business, whether it is for a start up, for expansion or for keeping it together through rough times, is always a difficult task. Given the present economic state, getting funds for businesses have become even more challenging, yet you should not lose hope. Your business success highly depends on your perseverance in finding a suitable finance solution for your needs. Here are some tips to help you find a solution for your financing needs.
Liquidate your Assets
Based on recent business statistics, more than 50% of business owners start-up their businesses with money from their own pockets. If your savings or checking account is still not enough but you’re so ready to start, use your other assets to finance a new business. Sell valuables and other pricey items you no longer need. You may auction your antiques, jewelries or the car you do not use. Instead of allowing them to collect dust and deteriorate, you’d get additional cash and people who will appreciate your items even more. Check out your life insurance, you can actually borrow up to 90% of its cash value for very low interest rates too.
Attract Investors
Investors can be heaven sent when you are struggling to kick start and find a way to finance a new business. To get some people interested, you have to prepare a good sales plan, marketing analysis and market assessment for your new business. You must be able to show a high level of expertise and a holistic approach on the market you want to approach. Also, be prepared to give up partial control or ownership when accept investors.
Apply for Loans
One time-tested of method of financing a new business is to apply for a loan. Still, not all business owners are approved on their loan applications. So if you’re considering this option, gather all the help you can get – consult with business lending and finance specialist to help you get better chances of approval for your loan.
Raise Money the Old School Way
Turning to your family and friends in financing a new business is a common, old-school method of raising money. When you resort to this, consider the possibility of jeopardizing your personal relationships with some of them. You have to present a formal financial projections and assessment to reassure them that they will get their money back. It also shows them that you are serious about the business and that you are taking them seriously as well.
Image Credit:
Worradmu – FreeDigitalPhotos.Net
