So, you think you have a great idea for a company. You have put together a nice little business plan, you have thought through the conversation you will have with your boss when you tell him that you are quitting to pursue your dream, and you have even identified some potential clients for what you want to sell. Next comes the big question. Where will you get the money to start your business? This age-old questions has stopped many a budding entrepreneur in their tracks and needs to be addressed smartly and decisively if you want to set up your new venture.
Here are some ideas for locating funding:
Take out a traditional loan.
Depending on your credit scores, the collateral you have and your assets, you may be able to borrow money to get your business started. Lenders look for these things and if you have them in abundance they will be open to discussing what you are planning and how you can be sure to get them their money back. If you own your own home for example, lenders will take this on as collateral and give you cash to get going, but if your plans don’t come to fruition within the timeline you lay out for the lender, and you cannot pay back the loan, he will be in a position to take possession of your home. You can do a similar scenario with your car or boat or any other asset you own. The process is complex and there is no guarantee that you will be approved and for what about, so be prepared for a fairly long road to this destination. In the end, these types of loans are a viable option but you need to be sure about your business plan.
Get a payday loan.
Since you have a job now, you might consider a payday loan. These loans can be received in a few hours providing you have a good job that pays well, and a bank account. These speed with which you can acquire these loans is wonderful, but they have high interest rates and should only be considered for short term borrowing. The money is automatically deducted from your wages, so you will have to plan for not having that money when you receive your next pay. Perhaps the best way to remember the important part of this loan is by remembering the phrase payday uk. This type of funding could be great if you are ready to start, and have a client willing to hire you immediately. You can get started and by the time you need the money from your wages, you can replace it with the revenue you receive in the new business from your client. The key to this strategy is timing and you have to be sure you can pay it back on time.
Borrowing from friends and family.
Perhaps the most common type of funding most small startups go after, is to borrow the money from a relative or a friend. If you have someone close to you who is willing to take a chance on your idea, this might be a great choice. You do not have to put any collateral (usually), and if things do not go specifically to plan, the odds are they will give you more time to get things going without any penalties. The downside of this strategy is that if things do not work out you may lose a friend or send up with a relative that never speaks to you ad family reunions.
Whatever routs you choose, make sure that you plan things about carefully and have a back-up plan position if one things does not go as planned. Good luck!