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Finding the money for your next business venture needn’t be hard. Just check out the suggestions below.
Friends and family
While not everyone likes to ask their loved ones for money, friends and family can be a very good source of funds for your next business venture. The situation can be mutually beneficial too as you’ll get the money you need to get your business off the ground, and your loved ones can expect a good return on their investment.
Just be sure to get all loans/investments from friends and family in writing, along with the interest or return they expect, and the terms. Otherwise, you could risk losing more than just money for your business but your relationship with your loved ones as well.
Self-fund
When it comes to starting your next business you may wish to explore the option of self-funding. This means you provide the capital you’ll need to get things going. For some people, this means dipping into their savings, and while this option can provide a means of starting a business without going into debt, it can also be risky. The reason is that you can lose your own money if things don’t work out.
Another option is to pick up a side hussle to earn the money necessary to open your business. The good news is there are plenty of options to consider from freelancing to selling assets you don’t need, you can even become a truck driver in your spare time. After all, the money is great and you’ll be able to save up enough to start your business in no time.
Startup loans
Another great option to raise the funds to open a business is the startup loan. Striking out on your own and investing in a startup or a franchise with companies like Primerica is a good place to begin to get some advice, but you still need to get that financial advice independently, too. This is a loan provided by banks and building societies specifically designed for those going through the process of opening a business from scratch. The great thing about startup loans is that they often come with a favourable rate of interest designed to support those in the beginning stages of running a company when profits are likely to be low.
However, a major consideration to remember with startup loans is that you can be personally liable to pay the loan back, whether or not your business succeeds. This means you can be left with considerable debt if your business fails that you will have to cover out of your finances.
Startup business grants
Another great option that can help you raise the money you need for your startup is a business grant. The most significant benefit that a grant has over a loan is that you are not expected to pay it back. Essentially that means you are given free money with which to start your business which can be very welcome indeed in the startup stages.
The only downside to choosing a grant over a loan is that the qualification process tends to be much more complicated. What this means is you’ll need to make sure you meet the qualification criteria and jump through all the hoops the organization providing the grant requests before you’ll be given access to it. You may even find that they will require you to update them on your progress after receiving the loan too.
