There are many people out there who have the 'entrepreneurial spirit' and want to start their own small business.
So what are the best ways of raising finance for your small business? There are quite a few different options, but let us just discuss a couple of them.
First of all realise that there are basically two different methods of financing for your business, either debt or equity.
You are either going to have to borrow the money from someone or some place and repay it, most likely with interest, or you will borrow the money in exchange for a piece of the company or business in return.
Loans- Many banks, building societies or other loan companies have the option to take out a small business loan in order to get your business up and running.
You will have to provide some basic information about the company and maybe even have an accountant look over your business plan to make sure that everything is legitimate before you may qualify for a loan.
These loans will then be paid back with interest over an agreed period of time.
Family and friends- Depending on the status of your friends and family, they may have a vested interest in your business or welfare, and as a consequence consider lending you some money to get your small business started.
It is possible you could offer them some shares in your new company for any investment they make or you could borrow the money as a loan and agree a repayment program with them.
It can be risky doing business with friends or family, so make sure you get the agreement on paper to make it official.
Also, be aware that if conflict occurs down the line, it can put a lot of pressure on the relationships that you have with these close individuals.
Grants - You never know what your government has to offer.
At times they are trying to boost the economy, so there may be some grants available to help finance your future business.
Since it would be government funding, it would probably be wise to make sure you have some legal and financial support when submitting your application and business plans to them.
Investors- It does not have to be just friends and family who may be willing to offer financial assistance when starting your small business.
Create a detailed and convincing business plan, with projections, and go out and search for some external investors.
Indeed, many people are searching for ways of how to invest their money.
Again, you may decide to offer shares in your business or agree a loan amount with them and pay it back with interest.
Follow the 'entrepreneurial spirit' and find the means to the end as far as obtaining finance for your new business.
Look at all your options and make sure you consider all of the costs, whether they are future interest charges, profit being paid-away to shareholders/business partners or other non-financial costs of such as potential conflict with friends or family.
So what are the best ways of raising finance for your small business? There are quite a few different options, but let us just discuss a couple of them.
First of all realise that there are basically two different methods of financing for your business, either debt or equity.
You are either going to have to borrow the money from someone or some place and repay it, most likely with interest, or you will borrow the money in exchange for a piece of the company or business in return.
Loans- Many banks, building societies or other loan companies have the option to take out a small business loan in order to get your business up and running.
You will have to provide some basic information about the company and maybe even have an accountant look over your business plan to make sure that everything is legitimate before you may qualify for a loan.
These loans will then be paid back with interest over an agreed period of time.
Family and friends- Depending on the status of your friends and family, they may have a vested interest in your business or welfare, and as a consequence consider lending you some money to get your small business started.
It is possible you could offer them some shares in your new company for any investment they make or you could borrow the money as a loan and agree a repayment program with them.
It can be risky doing business with friends or family, so make sure you get the agreement on paper to make it official.
Also, be aware that if conflict occurs down the line, it can put a lot of pressure on the relationships that you have with these close individuals.
Grants - You never know what your government has to offer.
At times they are trying to boost the economy, so there may be some grants available to help finance your future business.
Since it would be government funding, it would probably be wise to make sure you have some legal and financial support when submitting your application and business plans to them.
Investors- It does not have to be just friends and family who may be willing to offer financial assistance when starting your small business.
Create a detailed and convincing business plan, with projections, and go out and search for some external investors.
Indeed, many people are searching for ways of how to invest their money.
Again, you may decide to offer shares in your business or agree a loan amount with them and pay it back with interest.
Follow the 'entrepreneurial spirit' and find the means to the end as far as obtaining finance for your new business.
Look at all your options and make sure you consider all of the costs, whether they are future interest charges, profit being paid-away to shareholders/business partners or other non-financial costs of such as potential conflict with friends or family.
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