Business financing can be especially difficult for startups, and that means you may need to find some pretty creative ways to get your business off the ground.
Here are six possibilities for business financing that may help you launch your startup, so you don’t have to wait for some kind of bank loan to get your business going.
Create a financial plan
Using the available funds you have, it’s a good idea to create a realistic financial plan, and then do your best to stick to it. Business financing can come in several different forms such as personal credit cards, family loans, 401(k) withdrawals, etc. Factor in whatever resources are available to you, and then make sure to stick to your financial plan.
Slow and steady
Especially at the startup phase of your business, you need to take things slow and steady, avoiding any major business expenses which don’t provide a direct return. You’re much better off to keep business expenses as manageable as possible, while you’re trying to stabilize your company and secure a place in the market.
Budget based on cash
A cash-based budget is generally much more favorable for a startup company, so that you don’t run into massive debt early on. If things don’t work out well in those first few months, you could find yourself with so much debt that you’ll never be able to get out from underneath it. As much as possible, pay expenses with cash.
Crowdfunding is a form of business financing which is gaining widespread acceptance these days, and the beauty of it is that you avoid personally investing your own resources. This can be a great way of funding your company before it even launches, assuming you can find a sufficient number of investors.
Fund your business with sales
This is one of the best ways of business financing that you might undertake. If you can sell your products or services before they’re actually ready to deliver to a customer, you’ll have a fail-safe way of business financing. Of course, after that you will definitely need to have a product your customers need and want, in order to continue the momentum you’ve gained.
Establish an investment limit
Before you even launch your business, consider what your investment limit will be, so that you don’t end up losing everything you own. Commit to a fixed amount and don’t deviate from it, even if you think an additional boost of cash might rescue the company. This rarely happens, and instead what you’d be doing is losing even more money.
Is your business limited by your cash reserve?
If your low cash reserves are making it difficult to conduct business or to fuel new business growth, we may be able to provide financial assistance. Contact us at 5 Star Funding Group, so we can discuss some possibilities for financing your small business.