I Want to Start a Business
Have you ever thought about starting a business? What did your future look like, back when you were a child? Did you want to become a doctor, a teacher or even the President of the United States? However, if you are reading this right now chances are that has changed since then. A lot of people grow up dreaming big but eventually settle with the idea that their dreams might not be achievable after all. Well, let me tell you something—that is not always true.
The number one reason why people don’t start their own business is that they either lack money or knowledge in order to pull it off successfully. But do not let this stop you from following your dream! There are tons of ways to allow for free financing in case you have a low budget and the internet is full of advice for people who want to start their own business. Today I will discuss three different ways in which a person can finance a business startup—these are through savings, loans or personal equity.
First, let us talk about savings. Savings might be the best option because you get to keep your hard-earned money while building up your company from scratch. The downside? Well, this may take some time so if you need money right away it might not be an ideal solution. However, there are other options that allow for quick financing such as loans or even using your own equity (if you already own an existing company). This makes for another great way in which one could finance a startup; however, this could also expose them to quite a few risks. If you decide that using your own equity is the best option, make sure you know exactly what you are getting yourself into before making this decision.
Next, we have personal loans. Loans are one of the most common methods used for financing (or at least attempting to do so). I personally think that one should avoid taking out personal loans in order to finance their business startup—why? Well because it may put certain restrictions on your company in case something goes wrong and if it does, your finances will be in jeopardy. However, if you take out a loan with an eye towards paying it off as soon as possible there shouldn’t be any issues. Lastly, let us discuss loans from investors. Most investors would like to see some security as well as equity (which means they own a percentage of your company) before investing in you and your business. But if you find someone who is willing to invest into your business without taking any percent of your company then that might be the best option for you at this point!
However, there is one thing that all these methods have in common: they can take quite a lot of time. This doesn’t mean that it has to take forever, but chances are it will still take more than just a day or two which makes getting quick financing very difficult. This is why I advise you to start looking around for different alternatives such as P2P lending options such as Lending Club.