At one point or another, every mega corporation was once a small business. It’s hard to fathom that a company like Apple started in Steve Jobs’ garage but that’s what happened. The ‘next Apple’ could even be down the street from you or if you’ve got a few good ideas floating around in your head it could start in your garage. Ok it doesn’t have to be in a garage but you get the point.
If you’ve decided that the time is right for you to start a small business then you’ll want to know all your options ahead of time. Successful small businesses are ones that go into business with a solid plan. They don’t rush in the second they have an idea and try to start from the ground up.
Financing Your Business
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Financing a business is usually the number one obstacle facing entrepreneurs since there is a very high entry barrier with things like restaurants and shops. Because most of us don’t have the cash to fund everything ourselves, a loan may be required to get things off the ground. Here are some of the best options for financing your small business:
- Go to friends and family first – Do you have a rich uncle or a friend who’s always looking for a great investment? If you can show why you think your business will become viable in the future and provide a decent return on investment, your friends and family may be willing to help you out.
- Equity in your house – This strategy is a little more risky but if you’re confident that your business will succeed it might be worth taking a calculated risk here. You’ll often be able to get a much lower borrowing rate by putting up your house as collateral.
- Traditional financing with a bank – Banks still remain one of the best options for funding small businesses. Many of the big banks have dedicated departments to funding small businesses and they may be able to help you out along the way. It can’t hurt to get multiple quotes from different banks, so make sure you shop around and compare the best options.