Raising the Funds to Start Your New Small Business

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We all know that you need money to make money, right? Well, when you have plans to start some of the business models outlined on this blog, your chances of success will be higher if you have a cash injection to get you started.

Now, let’s be clear – we aren’t talking about raising massive levels of capital, here. But we are thinking about paying for a website, buying some inventory, or taking out some advertising on social media or Google’s Adwords.

It could be a few hundred pounds you need to get started; it could be a couple of thousand. But make it you must, and in today’s guide, we’re going to go through a few suggestions for you to start making things happen.

Open your wallet

If you start a business, you have to be prepared to put your money where your mouth is. And if that involves dipping into your savings account or raiding the piggy bank, so be it. As we went through above, it doesn’t have to be a fortune, but before you go to friends, family, and banks with a cap in your hand, prove you believe in your ideas by using your own cash.

Speak to family and friends

Don’t be shy in asking to borrow money from your family and friends. Given that interest rates are so low on savings accounts these days, you can offer them a pretty attractive deal, while you will avoid paying the weighty interest on a bank loan. If it’s going to cost you £1000 to buy in enough stock to start your reselling business, for example, you could offer them an extra percent on their current savings account interest, and they will get more back in return, while you get to start your business.

Get a loan or use a credit card

Banks aren’t too keen on lending to the kind of businesses we talk about on this blog – they deem them as too much of a risk. That said, nothing is stopping you from applying for a personal loan or taking out a credit card. Just make sure that you get a credit card deal with interest-free terms on payments, which will allow you to invest in your stock or website, and pay it back within the term without paying a penny more in interest. If you have a business that you know has a quick turnaround, you can also consider using a short-term loan company. As long as you can make those sales quickly, you can pay off your loan before the higher interest kicks in and get your business off the ground.

Set up a partnership

Finally, do you have friends or family looking to invest? If so, why not set them up as a partner, silent or otherwise? They fund the business in the early stages, you do all the work, and you both walk away with a tidy profit that you can use to reinvest. Plan for a year in advance, and then have talks to discuss whether or not the partnership will continue. If your friend decides to stick around, great – if not, you should have the money you need to continue and grow.