Launching a startup involves taking a leap of faith in yourself. No matter what industry you choose, there are almost certainly many other businesses trying to do the same thing. In the age of the internet and globalization, the startup space is incredibly crowded. By starting your business anyway, you are asserting your confidence that you have what it takes to succeed.
It is this confidence that will give you the strength to bulldoze your way towards the finish line, selling your idea to banks and investors, getting your staff on your side, and ensuring your product or service is top-notch. However, it is towards the finish line that many startups stumble.
The reason is not because of a lack of confidence. Your faith in yourself has gotten you this far, and you are probably more sure of your business than before. Rather, it is complacency.
Why Good Startups Fall Apart
When you are drawing up your plan to take the industry by storm, you are surely aware of everything that could go wrong. Launching a startup requires you to know every single small detail about how much money you need, what steps you need to take, and who you need to get on your team. At some point, even the best entrepreneur takes a breather. You are so far along the right track that you stop doing the exact calculations.
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Suddenly, you realize that you do not have the funding necessary to actually launch on time. You realize that you need to hire more people, but will struggle to pay them. Problems pop up in your design that delay production or stop it entirely.
If this is happening to you, you are not alone. Many entrepreneurs go through this when launching a startup. It is a natural consequence of success and is definitely not a sign of lack of preparation. Preparation will only get you so far.
When your startup is on the verge of falling apart, here are some ideas as to how to get it back on track.
Small Business Loans
Perhaps the most suitable way to get back on track is through small business loans for startups. You are unlikely to be able to get more money from the bank. Also, your investors may not be inclined to give you more if you have not yet fulfilled your promises. A small business loan can make the difference in launching a startup by giving you enough to cover the remaining expenses before you start bringing in enough money with which to move forward.
The benefits of a small business loan are that you can borrow a sum of money for whatever you need, without having to wait for approval from a big financial institution. As long as you can demonstrate you will be able to pay it back and have good credit, you can get a relatively low rate. Your money will be in the bank in a short amount of time.
If you can do the paperwork to justify your business’s need for a loan, you may even be eligible for help from the Small Business Association (SBA), that will stand as a guarantor on a loan to give you the lowest rates possible.
Are There Alternatives?
A small business loan may not be ideal for everyone. The good news is that there are alternatives when launching a startup. One strategy you may take is to speak to investors about having more of a hand in the business. As long as you are transparent and they can see their money is being put to use responsibly, they may be willing to help you get there with both money and time.
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Ideally, you will find a great angel investor who knows that you are most likely to succeed with good mentorship. This will put you in the best position possible to make your business work, and they will likely give you extra money if the original amount falls short.
If you have put a lot of work into launching a startup and just need a little bit more money to get over the finish line, a small business loan may be perfect for you. While there are alternatives, they are very situation-specific. Apply for a small business loan and you can receive the resources that will get you to launch.