Many people want to have a personal business, but the main impediment is given by the fact that they don’t have enough money to start it. There is indeed needed a large sum of money in many situations, and it’s important to have it if you want to have a chance at success.
However, you’re going to need money right from the start, so you’d better know exactly what you have to
do. Let’s see how you can fund your business easily and affordably.
If you want to get it started, first of all you have to think about a domain of activity. Consider what you know how to do very well, as that could be a starting point for a business. For example, if you know accountability, you can keep the books for other small businesses; if you know how to bake cakes, you can open up a cake shop; if you know how to do nails, you can start on this, and the examples could go on.
This being said, once you know what you want to do, you have to think about how much money you will need. This is because a home based business needs less money than any other type of business – one that has an office and a physical location.
For example – if you plan to open up a coffee shop, you will need a bigger location, meaning a bigger rent, but you will also have to invest in furniture and the rest of the equipments that are required in this kind of location.
The Business Plan
The business plan is extremely essential, especially if you need funding. This is because without a business plan, you won’t be able to get a loan or to attract an investor. This plan has to have all the important details about your business – the name, the location, the type of business and its activity, how many money you plan to invest, who will be working there – meaning how many employees, the financial planning and the marketing plan.
Everything has to be detailed so that whoever takes a look at your business plan can judge if the business will be profitable or not. Even so, for what you’ll have to do next, the business needs to be profitable, otherwise it will all be for nothing.
If you decide to get a loan, you will have to take your already done business plan and start looking for banks or financial institutions that are willing to offer you money for your business. If the business plan is done perfectly, you will be able to get a loan, but make sure you have some starting money. They will finance about 75% or 85% of the total sum that you need, so you’re going to have to have the rest of the money.
If you want to attract investors for your business, the business plan will prove to be extremely efficient. If they see that your business has potential, you will be able to attract someone.
However, you won’t be the sole owner of the business, as the investors will take a good share of the business and its profits. This means that they could be helping you with the start and they might be offering you a good sum of money, but you will have to share the business with them – you could be left with 25% of the whole business, without being able to decide about its future.
However, if you want to be the sole owner of the business, you could save money for a longer period of time and use your own savings for financing the business, or you could take a credit. In these cases, you take the decisions regarding your activity, but make sure you always get specialized help for making your business succeed.