There are thousands, if not millions of Americans, who have a dream of starting their own small business. Owning your own successful small business can provide a variety of benefits.
Benefits of Small Business Ownership
- Independence
- Profit
- Control
- Passion
- Improving the community
When you own your own business, you can make decisions for yourself instead of following the direction of a manager or corporation. You control the product or service that you are selling and can make tweaks to your business model when you see fit.
Additionally, starting your own small business can cement you as a job creator and a leader in your community. Lastly, you will see the vast majority of your company’s profits–which is a potentially lucrative position to be in.
With all these benefits in mind, you might be thinking: “why isn’t everyone trying to start their own small business?” The answer boils down to one main component: money.
Most people with a good business idea don’t have the capital to fund their business with just savings. So, how exactly do you fund your small business and get it off the ground?
Take a look at the tips below and be on your way to enjoying all of the benefits that come with owning your own business.
Private Investment
Finding private investors to fund your small business is one of the most effective ways to get your business off the ground.
Not only will it give you the funds you need to start your business off on good footing, it will also prove that your idea is good enough to attract the attention of others looking to make a profit.
Finding the right private investor is not necessarily easy though. Private investors are taking a huge risk when they decide to invest in a company. If the company fails, their investment is gone. So, when attempting to find private investment, make sure you have an airtight business plan and full confidence in your product or service.
Crowdfunding
Crowdfunding as a means to fund a new business is a relatively new phenomenon stemming from the proliferation of the internet.
There are a variety of different options to choose from when you are looking to pick the best crowd funding site to fund your small business. Once you choose the site that is right for your project, whether it is Kickstarter, GoFundMe, or LendingClub, you will have to think carefully about how you make your pitch to a large group of potential investors.
You will need to consider why your idea is good enough to deserve the help of complete strangers. Additionally, will you offer any rewards or early access to your product or service to those willing to donate?
Furthermore, think carefully about a narrative to sell yourself and your fledgling business. Much like a business plan, this pitch will be the key to procuring the funding you need.
Loans
If you are totally confident that your business idea will take off – which you should be – then you can consider taking out a loan to fund your business.
Loans are scary to a lot of people who are taking the leap into small business ownership. People get nervous that if their business fails, they will be left in debt that they will not be able to pay back.
However, if you have a solid business plan and do not rely on fully funding your business through loans, they can be a great option.
There are many different types of loans that carry different benefits. Bank loans offer relatively low interest rates but can be difficult to procure if you have less than stellar credit.
The Small Business Administration, or SBA, is a government program that identifies potential small businesses with upside. If the application is accepted, the SBA will give you a considerable sized loan.
If, however, you have bad personal credit and no existing line of business credit, getting a loan can be very difficult. This is when a title loan would come in handy.
Let’s say, for example, that you have managed to procure a sizeable amount of private investment and have poured your savings into a business venture in Orlando, Florida. You are all set to open your business, but an unexpected expense pops up and you have no more funds to work with. If you own the title to your vehicle, you can find title loans in Orlando, and walk out with up to $10,000 within an hour, thus saving your fledgling business.
Conclusion
The world of small business ownership is scary and nerve wracking, but also exciting and rewarding. With these tips on how to fund your small business in mind, you can start your own small business adventure today.