A lot of aspiring entrepreneurs have one clear ambition. They have a fantastic business idea, and they know that they
could make money with it. They only need to make the launch possible. Saving money to start a business is no easy task, especially if you already have other essential payments to make as part of your budget. Between paying off your student loans and meeting your mortgage payment terms, saving money to start a business becomes a distant dream.
New entrepreneurs can struggle to apply for a commercial loan. With no business experience, you’ll have a hard time convincing banks. But have you considered other ways of funding your business venture and managing funds?
How much do I need?
Your dream business may be the brainchild of Google and Apple, but you have to remember that even big companies started small. Therefore, you can launch a small-scale business that doesn’t break the bank. For a start, you’ll find that gathering funds is a lot easier. You can launch your home-based franchise for as little as $2,000. That’s the kind of money that you can save in a few months, avoiding the hassle of loans and investor stress. The other advantage of starting on manageable costs is that you can learn to manage your business safely at your own pace.
Do I pay tax on the funds?
Running a business and filling up your corporate tax return is not the same as managing individual taxes. Newcomers to the business world can struggle to figure out how to display costs and funding for tax preparation without the advice of an experienced CPA firm. Mistakes on your corporate accounting books can have dramatic consequences, and end up losing your funds to a costly fine. Regardless of how much you choose to invest in your venture, your first call should be to a certified accountant. or financial advisor. Without a clear understanding of what is deductible, allowed, and taxable, you could be wasting valuable business money. Find out How to find the best financial advisor for you.
How can I attract investors?
Can a small business appeal to investors? The answer is yes. You may not be able to build a presence on the stock market, but you can make yourself known on crowdfunding platforms. For instance, Kickstarter is a great place to showcase your business idea and appeal to your future audience. You can also consider cryptocurrency investments. Contrary to common belief, cryptocurrency is not just a useful money-making tool. It also allows investors from all around the world to fund your business vision.
There are some instances in which it might make sense to present your business concept to a venture capital firm or two and see if they might be interested. This is most relevant to the kinds of businesses that are doing something bold and acting as industry disruptors, especially in the world of tech.
Can I apply for a grant?
More and more business hubs and federal agencies are willing to promote the local economy with grants. Grant money varies depending on your location and your industry sector. Some projects, such as innovative engineering for medicine or public infrastructures, are encouraged with generous grants, while other startups and small businesses may receive less money in comparison. Ultimately, it’s worth doing your research as you may find that you don’t have to spend anything to get started. Grant money typically is string-less, meaning that while you have to meet requirements, you are not required to pay it back.
If you’re ready to start your entrepreneurial adventure, your top priority is to figure out how to fund your venture. From individual savings to grants, there are many options available. New entrepreneurs, however, need to remain cautious to avoid waste and mistakes. Understanding how much you need and how to best manage it will save you many problems!