One of the biggest challenges which all businesses face at whatever stage of their business life that they are in, is finances and it is vitally important that a business is built on strong financial foundations. In fact, starting out as a business is one of the toughest times and it is during these early years that a business is most vulnerable to failure.
I was talking to my fired and financial expert Eugene Bernshtam recently and he was telling me how many people had asked him where they could get their hands on the cash to fund their brilliant business idea. I was surprised that so many people were curious about this so I wanted to do an article about where you can get your hands on the cash if you have an idea that you think is a winner.
Banks having been loaning money to new businesses for a very long time and I would still recommend them as the first port of call if you are looking to get some funding for your business idea. What is great about a bank loan is that they have very flexible terms for new businesses regarding repayments and they will also give you a great amount of support for many aspects of running a business. Banks want businesses to succeed as it not only means that they will get their money back but it also is likely to mean that you will stat with them and bank with them throughout the life of the business.
Since the boom of so many start ups in recent years, particularly in the digital world, investors are chomping at the bit to find the next start up which they can invest in and make some strong returns. If you think that you have a great idea then put together a solid business plan and then go and finds people who are willing to invest. You will need to hustle hard to get yourself into a room with someone that is looking to invest and then you will need to persuade them why your business is going to make them money. It is likely that you will give up a percentage of your business in exchange for the money which you will receive but this will be well worth it and you will get plenty of knowledge and support from the investor.
If you have an idea which is going to be relatively low cost to put into action then you could always pay for it yourself. This may cause some risk for your personal finances but it could pay off if you are smart and the result will be you owning 100% of the business and being completely debt free, it will be tough but it is definitely possible and it carries many advantages with it.