Starting a business is challenging, especialy when it’s your first time. While there are many things to deal with, funding is one of the leading challenges faced by entrepreneurs when starting a business.
Below are 6 sources of money to start your business.
1. Personal savings
Personal savings is your best source of funding for startting a new business. Aside the fact that you won’t have to face a rejection from yourself, starting a busines with personal savings takes unnecessary pressure off your head. It is easily accessible and should anything happen to the business and you lose the money, no one will come for your head; it’s your money.
2. Friends and family
If personal savings is not an option because it doesn’t exist, your friends and family are great options to consider. The advantage of this choice is that you don’t have to spend a whole day rehearsing your Oscar winning pitch. It shouldn’t be tough to convince your loved ones. The downside is things could get complicated. Should you lose the money, your relationship with them is at stake. If you’re going for this option, be sure to let them know the risks in advance.
3. Sale of unused personal properties
Time to take an audit of your personal items. There could be stuffs you don’t use anymore but can fetch you some money. The oney might not be much but it’s a great start.
4. Grants
We all love grants. You’re not paying it back and yu’re not carving out any of your equity. There are several organizations out there that gives grants to small businesses. Look for them and apply. You might be lucky.
5. Customers/clients
Depending on the type of business you’re going into, you might be able to get customers who are wiling to pay you in advance. With their money, you produce the products or you offer the service. it’s a great way to get started. You just need to be creative.
6. Investment
It’s possible you have a great business idea that will be worth investors’ money. Carry out your research, craft a business plan. Get yourself ready. Someone out there might be willing to fund your idea.
There goes the six sources of money with which you can start your business. Many entrepreneurs start their business with a loan. We intentionally left out loan from the list; this is because we do not support the use of loans to start a new business, especially if it’s your first time starting a business. We encourage entrepreneurs not to consider a loan but instead, to get creative with their business if other means of funding is not available.
Bloovera helps entrepreneurs across the world take care of all their business, creative and digital needs. If you have any question or you need help with your business, feel free to reach out to us through any of our contact channels.
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