There are many reasons for putting your business dreams on hold and a lack of cash is one of the most popular.
If a shortage of funds is frustrating your plans to start up a new business then you might be interested in some of these ways of getting the ball rolling.
Get a Business Partner
One of the most effective ways to get around this problem would be to bring a business partner on board. The major issue with this is finding someone who buys into your idea, is willing to invest their money and would be easy to work with. If you can find a partner who meets this criteria then you could be onto a winner.
There are a number of things to look out for in a business partner, they need to have similar ambitions, similar values and you need to trust them. For this reason, close family members, friends and former business associates can all make great candidates.
Ask for a Loan
Starting a business with a loan is another route you could look to take. In fact, some people will tell you using other peopleâ€™s money is the only way to get started, with loans being one way of doing this. Unfortunately though, it isnâ€™t always as simple as just asking for money and getting it; especially if youâ€™ve got poor credit, or you are a young adult with very little credit history. For this reason, many new entrepreneurs choose to apply for poor credit loans such as guarantor loans. With this type of borrowing a third party, such as a parent or other relative, offers the guarantee that they will pay back the loan if the borrower defaults. The support of the guarantor allows lenders to offer up to Â£7,500 to those with a low credit score at a much lower rate than most other bad credit loan providers.
Look at Government Initiatives
The government offers a range of initiatives designed to help entrepreneurâ€™s kick-start their new businesses. With the economy still struggling these schemes and initiatives are right at the top of the Governmentâ€™s priority list. After all, if the Government is able to turn these small business ideas into profitable companies, they could prove a real asset to the economy in terms of job creation and income revenue.
Crowdfunding is a relatively new concept however it has already provided some great success stories. To take advantage of it you will need to find the right crowdfunding site for your idea and then launch a campaign that captures peopleâ€™s imagination. If you have a quality product and offer something different then it could well work for you.
Charge Up Front
A more traditional way of getting started with little money is to charge your customers up front. This is clearly going to be easier in some businesses than in others and it could make the start up period a lot more relaxed. If this approach is a possibility for your business then the key lies in getting a few good customers lined up early on and collecting their fees.
Work While You Start the Business
Instead of putting all your eggs in one basket you might consider starting up your business alongside your current job. Thereâ€™s no question that this is a tough thing to do, youâ€™ll probably find that your work life balance and sleep patterns are compromised, however, if you are determined to make a new idea work then a few months of pain could prove a small price to pay. Even if you canâ€™t manage a full time job while starting the business you might consider something part time or even some freelancing to keep the money coming in.
Strike a Deal with Your Suppliers
Finally, might there be a chance to strike a deal with your suppliers? If a lot of your initial outlay is going to be on their products it might be possible to get a period of grace before you pay out. This could give you the breathing space needed to get the business up and running.