In the past year, over 120,000 start-ups have been created. However, taking the plunge and starting your own business is a tough decision to make. After all, if you already have a salaried job, then you’re likely taking a huge financial risk in setting up your own business. However, when done properly, starting your own business can be hugely rewarding both spiritually and financially. If you’re looking for help for ideas on financing your start-up (especially ones different to our previous post), then this post can help. Here are the top five ways you can do just that.
#1 Visit the Bank
This is the most popular way of financing a business; approaching your high street bank with a business plan. That’s unsurprising, because as an entrepreneur with a good credit rating, you can get a loan for up to £25,000.
This is only possible if you have a very solid business plan though, so be sure to prepare this in great detail. It should include everything from the vision of your business to the branding and a detailed breakdown of how you’ll spend the money on offer to you. This means that you should be armed with facts and figures beforehand.
Finally, remember to shop around if you’re going to the bank. The same company you’ve used for years may not be offering you the best possible rate, so take a look around.
#2 Explore Your Savings
Although you can get money from banks for your business, you’ll often have to supplement this money with your savings, too. The more money you can put into your savings before starting your business, the more it will save you in the long run, too. As you’ll be paying interest on any bank loan.
Psychologically, your own savings can make a difference, too. By spending your own money, you tend to be more forensic with your purchases, ensuring there’s no waste.
#3 Use the Government
If you’re struggling to find your own money to put into the business, then the government can help make your dreams a reality too through a number of different schemes. These cover a number of different things, such as:
- Finance and loans
- Business support through mentoring and consultancy
- Funding support for small businesses.
So take a look online and see if there’s anything available for you.
#4 Capitalise on Investments
Conventional investments ranging from ISAs to stocks and shares can also be useful for your business funding if you’re willing to wait for the long term. With stocks and shares, the right investment can make you large sums that you can put toward your business (and use to show lenders your business acumen, too).
Try investing in businesses similar to what you hope yours will become, as you can use this as an opportunity to learn more about the market you’ll be operating in.
#5 Explore the More Unconventional
If all else fails, you can take the more unconventional route and try other forms of investment, such as a form of online trading. Online trading like this is a high risk, high reward strategy though, so you should consider the positives and negatives before you begin.
However, with online trading, there are a number different methods, ranging from forex trading to spread betting and even CFD trading, so you’re more likely to find something that suits you. Just educate yourself before risking your capital.
To conclude, turning your dreams into reality and starting your own business could be simpler than you’d imagined, and there’s sure to be a route for you. So examine these five ways carefully and choose the one that suits your needs the most.