Running a business is hard work and owning a profitable business is harder still. This is why it is important that before you set up your company you take the time to write a comprehensive business plan, which will provide you with a clear outline of what your business is, why it will work and how you are going to achieve success. A well written business plan is also the key to getting help when funding your start-up. Here’s some of the options that you can check if you’re lacking funds for your small business. 1-2-3 Loans
Whether you want to run a side business on top of your day job or are planning to take the plunge and become a full-time business owner, you are probably going to need to get some extra money to fund your enterprise.
When looking to start a business many business owners turn to their bank for a business loan. Although banks are very cautious about lending money to would-be entrepreneurs, most will be willing to offer a loan if they believe the business has a strong chance of success. As with taking out any type of loan, you should look carefully at the interest rates of the business loan and also ensure that you are able to pay back the loan in full within the time-frame the bank sets out for you.
Dependable Government grantsThe Canadian government is keen to help encourage more small business owners and as a result there are grants available aimed at those looking to start-up businesses. Getting a grant from the government isn’t easy, but if you are successful it could provide a substantial sum of money that will help towards your business, although you will often also need to get extra funding from elsewhere. While a government grant might not be enough to fund your entire business costs, it is worth checking out the government website to see if you are eligible to apply for grants.
Seek for InvestorsAnother common way for small business owners to fund their start-ups is through investors. For some this means heading to successful entrepreneurs or those with financial means and pitching their business plan in the hope that they see potential in the idea and invest in the business. For others, approaching family and friends with their business plan can provide the money they need for their business.
Use your Credit cardsOne of the riskiest funding options is to get a business credit card. Like with standard credit cards the interest rates on business credit cards can be high and they usually work best if you can afford to pay off the bill in full each month. Saying that they are a useful form of funding for those whose enterprise doesn’t require too much capital to launch.
However you decide to fund your business always try and keep your personal assets, for example your home or pension fund, separate. Although whichever funding option you choose, you will probably invest some of your own money as well, it is vital that you view your business as a separate entity to your personal finance, or else if your business fails you could lose more than just your company.