Businesses is all about ideas and executing does ideas properly and the lack of money should not be a hindrance for you to start a business. Yes, it may be one difficult dare for some but it’s possible if you want to be part of the 1% to choose courage over fear and actually make it happen. Think of the big businesses that are now conquering the corporate world, do you think they just imagined the expansion and did not do anything about it? No, because a mere idea is going to be an idea forever if you will not take the action to make it a reality. Though starting up or expanding needs an amount of money and most entrepreneurs struggle to manage their business funding, remember that every problem has a solution. To help you manage your ultimate problem, I’ve come up with the list of the ways on how to fund your business.
Catch me in my live training events! (quick plug)
The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.
Stock Smarts Cebu — April 6 & 7, 2019
Investing Insights Japan – April 13, 2019
Stock Smarts Singapore — May 18 & 19, 2019
Investment Conference 2019 – May 25, 2019
Stock Smarts Manila — June 15, 16, 22, 23, & 29, 2019
Stock Smarts Iloilo – July 6 & 7, 2019
Stock Smarts Cagayan De Oro – July 20 & 21, 2019
Stock Smarts Hong Kong – August 11, 2019
Stock Smarts UAE – August 30 – September 3, 2019
Stock Smarts Qatar — October 3 – 6, 2019
Stock Smarts Taiwan – November 2, 2019
A dedicated businessman starts with his own money to start his own business. If you think you have enough personal assets, don’t be afraid to take the risk. It’s the most convenient way to fund your business since you don’t have to pay loans, interests, and investors. If you can manage your cash flows right, the payback will be big.
This is what I suggest among everything in this list. Use what you have, earn slowly and reinvest the earnings. Don’t buy stuff you do not need yet in the early stages of the business. Be frugal and just bring everything back to the business.
Have you ever heard of the saying, “Two is better than one?” It applies to businesses too. One way you can increase your resources and funding and possibly spread out your workload is by partnering with someone who has the same goal as you and complimenting skill set. Partners can be individuals and existing companies out there.
A traditional way to help you fund your business is selling the shares of your enterprise. It is a basic method and is exercise by almost all the companies globally. Take note that before you can do this, it will require you some compliance and undergo complicated processes. And as an entrepreneur who wants his business expanded, this is not a hold back but a sign for large fund-raising.
Another common way of solving your funding problems is by seeking funds from rich investors, investment banks, and other financial institutions. Through venture capital, be ready to give up some of the stake of your business to your investors if you want the resources to enter your door constantly.
An angel investor usually come from entrepreneur friends or relatives. If you’re one of a lucky person and found an angel investor, your funding to start your business or expand it is solved since this person gives fast funding to make your plan come to reality. It can be a one-time investment or continuing one, depending on your agreement. It is also typical for an angel investor not to get involved in the everyday operation of the enterprise.
No personal money? No problem! Local banks are there to help you start your small business if you don’t have enough money or investors to accumulate enough funds. Through this, no sharing of company will happen but you have to bear the payment of interests and provide personal guarantee.
Among all of the items specified here, this is the least that I recommend. Do not go into debt first if the company has no track record of earnings. Only borrow if the company is earning massively and you need the cash to scale.