6 Ways To Fund Your Business Start-Up
If you’re thinking of starting a business one of the most important things you need to consider is whether or not you have the funds to do it. Most people say that the ideal amount to have saved when you start your business is six months worth, but you will also need to think about any start-up costs you’ll incur. With that in mind, here are 6 ways to fund your business start-up:
1. Put Away A Portion Of Your Wages Every Month
One of the best ways to save for your business start-up is to make sure you’re putting away a set amount of money each month. Whilst this may be one of the slower methods, it’s definitely one of the most effective. If you want to be sure you put away money each month, you may want to consider setting up a direct debit that leaves your account every month. This way you won’t be tempted to spend it, and it will feel as though it’s one of your regular bills. For more tips and tricks for saving every month, you can visit this guide here.
2. Create A Budget That Factors In Your Savings
Having a budget is one of the best ways to keep track of your money, as well as a great way to factor in your savings. Using a spreadsheet you will be able to write down all of your incomings and outgoings, including the amount you’re going to be putting into savings each month. Whilst this doesn’t do the saving for you, it’s a great way to hold you accountable.
3. Create A Kickstarter Campaign
If you have a great idea and don’t think you’re going to be able to raise the money in time to launch, you could always start a Kickstarter campaign. The idea is that in return for rewards, people can donate a set amount to help you get started. Each reward will have a separate price and you can only withdraw the money if you meet your overall goals.
4. Consider Taking Out A Loan
Whilst this may not be your first option, often one of the best ways to fund your start-up is to take out a loan. Whether it’s one like the ones you can get at GetCash or a start-up business loan, that little bit of extra money can go a long way when it comes to getting yourself started. Whether it’s used to help set up your website, used as spend on your advertising budget or used to buy in your first batch of stock – a loan should never be considered a bad thing.
5. Apply For Funding From Local Start-Up Facilities
If you don’t want to take out a loan there are lots of different start-up facilities that you can contact. Although most work on a similar basis to a loan, there are also some that offer grants that do not need to be repaid. You’ll have to go through an intensive application process, but it will definitely be worth it.
6. Negotiate An Advance From Your Clients
If you know you’re going to be working with several clients and you’ve already got them lined up, you may want to consider asking them for an advance. Whether it’s charging them for three months up front or charging them for the whole year in advance, you need to find what works best for you.
Are you thinking of starting your own business? What can you do to ensure you have enough start-up funds? Let me know in the comments section below.
[a contributed post]
JOIN THE WHO SAYS WHAT COMMUNITY!