You have a strong business idea and you know how far your business could take you. The only thing standing between you and your success, is your funding.
Finding the right source of funding is one of the biggest challenges facing entrepreneurs today. Here we’ll take a look at some potential funding options to get your small business off the ground.
An investment ISA could be the perfect solution to your business funding issue. When you invest in your future with an ISA from wealthify.com, you’re placed in full control of your financial future. A simple and highly effective way to save or invest up to £20,000 each year in a tax-efficient approach, it makes perfect sense to fund your business dreams with your own foresight and persistence. With an ISA from Wealthify, you can access your accounts and withdraw at any time, if you’re waiting for the right moment to start your business, flexible access is essential. Speak with the team at wealthify.com for more information.
Family and friends
If you have friends or family who are willing to help fund your business venture, then you’re in a strong financial position. It’s an effective approach that can help you get your business off the ground in those crucial early stages, and it means you can pay back friends and family when the time is right.
It’s wise to enter a formal contract when borrowing money, even from friends and family, that way everyone’s rights and interests are protected.
A bank loan
The most traditional source of investment is still a bank loan. Approaching your bank for the money you need to start your business is an overwhelming prospect, not forgetting the additional research that comes with checking interest rates and your repayment options. If you have a good relationship with your bank, then speaking to them about a possible business loan makes sense. If not, there are other options to suit your circumstances.
Reaching out to the public to fund your business venture isn’t unheard of, and if your business idea has potential and your business plan is attractive then you can have your business funded in terms of sharing equity in your company or lending you the money outright. This process is quite lengthy, and it can take time to reach your monetary goal.
Use your credit card (with caution!)
If your business start-up doesn’t require too much funding from the outset and gradually building your business via credit card payments is a viable option, then you’ll be a step closer to your goal. Whether you’re using your card to pay for materials and equipment or to buy stock, make sure you’re paying off your card each month to prevent yourself spiralling into debt. This would be a disaster not just for your business, but for your personal finances too.
And finally, bootstrapping
The most popular and common way businesses are funded today. Bootstrapping is a term for self-funding. This means funding your business without any investment or outside assistance. You could do this in the form of using your credit card (as above) or setting aside some of your current monthly earnings to fund your dream. This process can take time, but if you’re determined and persistent, all your hard work will eventually pay off.