You’ve had a life-long dream of owning your own business and become your own boss. Now that you have a great idea or have gotten the venture off the ground, you have to face the hurdle of keeping it financially afloat. Here are six tips to keep your business flush with cash.
1. Get a bank loan
The most common way to finance a business is via bank loans. Although these loans have become somewhat more difficult to qualify for in recent years, large banks such as Bank of America and Chase have some special programs for small business startups. It’s always worth the time to seek out a bank loan in any case.
2. Venture capitalists
Another traditional method of acquiring business funding is via venture capitalists or angel investors. When approaching these individuals, it’s best to demonstrate that you have some experience and expertise in your industry. They also want to be convinced that you’re passionate about your ideas, and you’ll be willing to work tirelessly to make your dream come to fruition.
3. SBA loans
Banks are not always thrilled to invest in a risky startup. This makes loans that are guaranteed by the Small Business Administration a very important source of financing. If you meet the government requirements for this type of loan, you can apply at a variety of lending institutions that are backed by the SBA loan program.
Sometimes you’re only a few hundred dollars short on your business finance obligations. For small loans like this, banks usually don’t consider it worth their time. Instead, you could turn to a microlender. They have fewer requirements, but they often charge higher interest rates than banks.
This method of gaining investment capital is becoming very common. The widespread use of peer-to-peer technologies and social networking have paved the way for ordinary individuals to grab a stake in all types of business ventures and charitable causes. A quick Google search will point to popular crowdfunding websites and platforms that attract millions of people who might pitch in for your startup endeavor.
6. Credit cards
When all else fails, you might consider using your available line of credit. Of course, there are some downsides to this approach. If you miss payments, your credit rating could get hit pretty hard. If you’re already in debt, this could also create a gulf too wide to cross. However, if you use restraint and good judgment, a credit card could be an effective tool to rescue your business finances.
If your efforts to finance your business seem overwhelming, don’t lament. There are many different strategies you can turn to that could make your dream a reality. These are just a few methods you could consider, but there are always more ways to acquire cash if you have enough determination to find them.