Starting your own business is a fantastic thing, but not something you should do lightly. No matter what direction you’re going in, or what industry you will be working in, there are many things that you need to consider before going forward, like your business plan, company name, are you working alone or with employees or partner? Do you need a premises, or have you got a home office? And, on top of that, you need to plan in time to register your business, do any hiring of employees or outside companies, networking, and setting up things like business cards, websites and social media. But the big thing you need to think about, really before you do anything, if figure out how you’re going to fund your startup.
Your idea Might take off and you start earning money straight away, but you still need some money to get things going. Obviously the amount you need depends on how big you’re going initially.
You could begin slowly and build your own business on the side of your existing job. This only really works as a temporary fix as you don’t want that to become your whole life. But it is a good idea to set up your company while having a constant income if you don’t have any savings to fall back on. Just try not to have the mindset of if it doesn’t work you have plan B sorted already – it’s negative and will affect the way you run your new business.
You can also look into getting a loan to kick off your enterprise. There are many different loans you can get, and you would normally be inclined to apply for a business loan as, logically, it’s going towards your business. However, because so many new businesses fail before the loan can be paid off, the interest rate on business loans tend to be quite high. So then you’re left with a personal loan, like the ones found at personalloan.co, which should have a lower interest rate due to the fact it’s in your name and not in the name of your company.
Crowdfunding is a way of making money by asking a large number of people to give a small amount of money. This can happen a number of ways – the most desirable, as you don’t have to give anything back, is if people believe in what you’re doing and so give you the money purely because they want to. This usually happens for companies that give back to the community like charities and theatre schools. The next option is to get funding from an investor – this way you pay them back with interest as your company grows. The third is to give shares in exchange for money, for this, people need to believe that your company is going to take off, and be worth the risk they are taking. Chances are that you will have to do a combination of these things to gain full funding for your business. Or maybe you just need the last bit to get you there, and the rest is coming from one of the other points on this blog. Either way, crowdfunding is definitely something to look into.