sam sall
10 ways to get the Money to Start a Business
January 10th 2010 14:51
Not having enough to start the business is ONE of the major reasons why people cant start their own business. Worrying about not making enough money to replace the income and benefits from a full-time job - is ANOTHER BIG discouraging FACTOR to budding business owners.
on the other hand there are more and more of individuals start businesses each year. How do they do it? Where do they dig up the money to get started? Here are ten solutions for startup funding for a micro-sized business.
1- home business . Starting your business from home is costing much less money as you don't have to foot the bill for office space and utilities for an out-of-the-home office. According to the findings of a US Census Bureau study of small businesses, nearly half of all businesses in the US are home based.
2- Get a part-time job.Work part time to save up your earnings until you have enough money to start the business. Or work part- or full-time in your own business and take a part-time job to supplement the income from your new business.
3-Start part-time. If you need a steady source of income to meet your financial obligations (and keep your family covered by health insurance) start the business as a part-time project. Don't quit the day job until the part-time business has a steady flow of customers and profits.
4-Get benefit from your dedicated employers. Former or current employers can help you too .i f you are an ideal worker or if left a company on good terms,your employer often a source of start-up work, or sometimes funding. Big companies that can send you their overflow work or small jobs that they don't want to do can also provide the initial stream of work and income.
5-Live economically.I do not mean that you have to deprive yourself or to waste hours searching for 50 cent-off coupons o live frugally. A few simple changes may save you $200 a month or more. For example make your coffee and lunch at home or in the office instead of buying them ,this could save you $10 or $30a week. If you're determined to save money, you can probably find a lot of other ways to cut back on your spending.
6-Use a credit card..I f you have good credit - is the easiest way to get money to start a business.But using a credit card to start your business bears some significant risk, too. If you're not careful you can quickly run up a huge credit card bill - a bill you'll be responsible for paying whether your business is successful or not.
7 - Borrow from family and friends: Most people who have no money to start with,they have to go to their friends, their family, their credit cards. I f you are one of tose people remember, you have to live with your family for a long time - and you probably meet with your friends all the times . So don't borrow from unless you have a sold business plan and have done enough research to know there is a market for what you want to sell.
8-Apply for a home equity line of credit. Some banks offer home equity credit that let you borrow up to as much as 85% of the appraised value of your home. Depending on the value of your home and what you still owe in other mortgages. The downside: you're putting your home at risk. If the business fails and you can't repay the loan, you could lose your home.
9- Apply for business loan : Be well prepared with the
information you'll need to give the bank like lease details, amount of investment
in the business by the owner(s), projections of income, expenses. You may also need a formal business plan. Don't be surprised if the bank turns you down, though. Banks are often apprehensive of lending money to startups.
If you have bad credit here are some of the methods to to start a business with
10 - Ask Your Bank About an SBA"Small Business Administration" -guaranteed loan : When you apply for this ,the banks look for of course is a business plan. If your bank agree to do so, they'll forward your loan application and credit information to the nearest SBA district office, for a decision. So primarily they do not lend money directly. They guarantee loans so that if you were to go your local bank - they would guarantee it.
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