This is the most favorable option for an enthusiastic startup owner, because it doesn’t include any other parties except yourself and your partner. If you’re reading this piece, it means that you’re the side that doesn’t have money, but has ideas. What you need is to find a business partner who has money and some entrepreneurial experience. That way, you will complement each other perfectly. Still, you should make a written agreement on the assets, rights and obligations that each of you has in the business. It will be a guarantee of a long-term and successful partnership, as well as protection from any undesired moves from any of the included parties.
Depending on the country where you live and work, you can count on different types of government grants and loans. While this practice is more common in European countries, the US Government sometimes comes up with special deals for particular fields of business, as well. If you’re interested in funding your startup through these programs, go to the local government agency and see if you qualify for any of them. Some types of startups will even be given grants that don’t have to be returned. This usually happens only in fields where there’s a lack of workers and startups. So, maybe you should go the other way around – first enquire about the fields that don’t have enough workers and launch a startup in that field. You’ll get a grant and you’ll also have a lot of work.
Although it might sound too optimistic, personal savings are a great way of financing a startup. The only drawback of this tactic is that it requires longer planning. On the other hand, it will depend on the type of business you’re planning to launch. For instance, some people managed to make their startups roll for as little as $150. Read more about it in a post brought by the Wall Street Journal.
Still, even a business that requires more initial capital can be founded with personal savings. You will need to change the way you think, as well as some routines you have. Nevertheless, if you’re eager to launch and run a business of your own, it’s better to go that way than to pay interest rates to other businesses. The US Small Business Administration provides some great tips on this subject, so find out more about it on their website.
As your startup startsworking, you’ll experience different situations with different businesses. What awaits you behind the corner is a plethora of aspiring entrepreneurs with little cash. In line with that, it might happen that some of them don’t pay you immediately when you send them an invoice. As a matter of fact, it might take days, even weeks for them to cover their debts towards you. By failing to transfer the agreed assets to your account, they put your cash flow and business budget at risk. Because of that, far-sighted entrepreneurs will always have a backup option, such as adding invoice factoring to their budget plan. It will allow you to get your money from an independent party. Furthermore, the lender will be paid for their services when the debtor pays their debt.
Startup budget alternatives aren’t as far-fetched as they might seem. What young entrepreneurs need to do is think outside the box and look for creative solutions. Going to the nearest bank and taking a loan might be the most convenient solution, but it’s also the most expensive one. So, set your business goals and pursue them in an original way. If you use your brain tobroaden your horizons, you’ll always be able to generate smart ideas for affordable business financing.
Dan Radak is a marketing professional with ten years of experience. He is a coauthor on several websites and regular contributor to BizzMark Blog. Currently, he is working with a number of companies in the field of digital marketing, closely collaborating with a couple of e-commerce companies.