In this day and age, starting up a company or business is as easy as creating a Facebook account. Lots of e-commerce and online shops pop up on Facebook, Instagram, or other online retail stores to put up their business. However, will they still stand six months or a year down the road?
It could last that long for online businesses granted they have high sales and revenue, and a small team to compensate. However, for those businesses who employs a large team, plans on opening up a physical store or office space, and companies with physical office space needed for business operations, they need more than a website or Facebook page to keep their venture up and running.
To ensure you can keep your business up, get the enough funding you need. Depending on how much you need and when you need it, there are a lot of options you can seek to get your business funded. Here are some of the ways to do so:
A lot of entrepreneurs build their business from the ground up thru self-funding. This is the common option for most small entrepreneurs—they choose to spend their savings to kick-start their small business (usually those who have small online stores).
If you have sufficient savings and think borrowing or applying for a loan isn’t an option for you as you’d rather risk doubling your savings, go for it. But while we’re at it, research and know the possible risks.
Borrow from family and friends
One of the obvious and easy ways to get funding is to borrow an amount from family or friends. This a great source of funding if you’re careful and responsible enough to repay the money you owe and spend it for the growth of your business.
Although this may seem like a good idea, it’s important to have a written agreement for all we know, money can be the root of evil. In this case, it can ruin your personal relationships as well as risk your business.
Thru bank loans
Though it can be difficult for some to get accepted for bank loans, it’s still worth a try. If you have good credit and a considerable collateral you have no problem to put on the line, you may just be the perfect candidate to secure a bank loan to fund your business. There’s no harm in trying, source every option you have.
Angel investors are business savvy people who know the risks and knows which risks they should invest in. nowadays, looking for angel investors has been made easy since they now have investment groups which you can conveniently find online. Look up your local angel investors and see which ventures they’re most interested in funding. Maybe your business idea is fit for the spot.
Other lending services
Gone are the days where you can only acquire loan traditionally—thru banks. Now, you can easily apply for loans from online lending services or marketplace online lending, the latter being more suitable for business funding.
Want to know more about these online lending services? You can simply look up about them online, find a reputable lender, and apply. You can also inquire regarding the fine print first before you lock the deal.
Chances are you’re already familiar of this—Kickstarter, GoFundMe, and more—are crowdfunding services that cater primarily to startup businesses who wants to reach out a bigger demographic of their market. Here, they’ll share their ideas and proposals, which they have a target fund goal to reach. Once reached, their products and services will soon deliver.
Sell you own assets
As mentioned earlier, you can opt to self-fund your business. One way to do so and get enough funding, plus your savings, is to sell some of your assets. If you have two cars, maybe you can sell the other one in order to have cash enough to fund your business.
Is there any other way you can think of that can help fund a starting business, big or small? Share your thoughts and help an entrepreneur out!
About Chie Suarez
When she’s not at home binge-watching shows, Chie Suarez writes for MarketLend, Peer-to-peer lending or marketplace online lending company that cuts out the middleman, cuts down on red tape and puts the investors and borrowers in direct relationship.