The idea of running your own business is an enticing one. Being able to be your own boss, make the decisions, and control your own schedule are all things that draw people to the idea of becoming an entrepreneur.
The stats tell the story of how many people desire to strike out on their own and run their own businesses. According to one study, 62% of United States billionaires are self-made. In 2016, there were 25 million Americans who were starting or already running their own businesses. In the United States alone, there are 30.7 million small businesses. These small companies create 1.5 million jobs annually and make-up about 64 % of new jobs created in the United States. 90 % and over of the business population represents small and medium-sized businesses.
Starting a new business requires a lot of experience, education, training in some respects, and the most important factor is money. Money is essential to building a business from the ground up. There are other circumstances where you can start a business when your short funds. Today we’ll look at how you can start a business even if you’re short on money.
1. Try to utilize free/cost-effective tools and barter.
Trying to save money when starting a new business will be something that becomes essential. For instance, do you really need to have an informational website (which requires constant upkeep, and drains money from your pocket) or having a free FaceBook page which can perform the same action for free?
These are things which you’ll have to consider. On another front, you can also trade or barter for your services with other businesses. Let’s say you’re running a first-time bakery shop, and there’s a small mom and pop grocery store across the street. Maybe you’ve run out of plates for customers, and don’t immediately have the funds to buy them. This could be an opportunity to trade plates for some of your tasty treats, with what the mom and pop store doesn’t have. In a case like this, everything balances out.
2. Apply for a small business loan.
Applying for a small business loan is another way to start a new business when you’re short on funds. Banks and online lenders offer small business loans (such as bridge loans Oregon) for customers who are seeking extra cash flow or investment funds. Such extra capital can help the business to perform such tasks as being able to buy IPv4 addresses. These can help new businesses to surmount that fund’s shortage.
3. Save your money.
This seems like a simple step in the overall process, but in many cases can be difficult. Save at least 6 months’ worth of living expenses which can be used when you start a new business. You want to follow this route because it usually takes about 6 months to see a profit from a new business. If you go into a business with this amount of money already saved, then you’re ahead of the game.
4. Look for angel investors.
One way to begin a new business venture with low funds is through an angel investor. Angel investors are high net worth individuals who provide financial backing for small startups or entrepreneurs. This is done typically in exchange for ownership equity in the company. An entrepreneur’s family and friends usually make up angel investors. These investors are usually the first people outside of your business who will invest in your company.
5. Ask your family and friends.
This is an option that a lot of people don’t like to utilize, but in some cases, it’s needed. Your friends and family know you better than anyone else. This can make it somewhat easier to pitch your idea of a new business venture to them, for the purpose of receiving a small loan. Just as you being professional with other possible investors, you have to present yourself the same way to friends and family members.
At the end of the day, you are asking them to invest a possibly sizeable sum of money into your dream. Do your best by presenting a complete picture of that dream to your friends and family, then follow it up with paperwork stating that they as investors will receive their money on a set date.