It’s easier than ever to get your own business up and running, and many young professionals are building a business alongside work – often on a full-time basis. However, with many of us employed in safe, salaried positions, with all the safeguards, the thought of expending large sums of money to build up a business, with no guarantee of a return can be quite daunting.
You shouldn’t be worried, and you should know that there are plenty of options as a young professional for financing your bright idea.
Take Your Time
Before you even embark on the road to securing finance for your business, it will pay in the long run to do your research. There are plenty of lenders out there who will say that their product is the best one to go for, or their framework – and why wouldn’t they? They are, just like everyone else, trying to make a sale.
It pays to take some perspective. If you don’t have friends who own their own businesses, or perhaps family willing to lend you some of their wisdom, there are options. You can take in internet advice, or pay for bespoke service. Building a relationship with consultants can have long-term benefits, too. It has been found by Corporate Business Solutions that use of consultancy or other third-party stakeholders can give you great advice for initial startup and also provide a barrier against adverse changes in the future.
The best option, in terms of what you actually get for your money, is to put your own into your business. If you have an amount of money that you are comfortable parting with, and it won’t affect your life to sink it into a business, you can use that, and therefore, be protected from interest and repayments. Bearing that in mind, several states have schemes geared towards first-time business owners to drive growth, so taking a line of credit is not entirely a bad thing.
If you’re digitally native, as many young professionals are, you can also raise funds for your startup through crowdfunding.
With your money in hand it is absolutely crucial that you properly manage your business – in every aspect. When you have a lump sum and a thousand brilliant ideas, it can seem like you have the entire world as your oyster and sensible to expend cash in every possible way. Be careful! A 2017 Forbes Q&A found that it in only 16-18 months, 80% of new businesses fold. This is largely down to a lack of funds. Treasure every dollar and make savings everywhere you can, to enable you to focus on the important aspects of business ownership and bring longevity into the folds.
Business ownership can be incredibly lucrative, but without proper management it can be a downfall, too. However, if you’ve got a great idea, or have noticed a gap in the market, you can employ these tactics to get yours up and running.