When it comes to starting a small business, there are many variables that come into play. You have to have the idea, the passion, the drive, and the funding. While each one is important, some are more so than others. You can always buy into a franchise, and for a bit you can fake passion and drive, but without the money, you aren’t going anywhere.
The funds used to start a business are called capital, and it is often the greatest deterrent to entrepreneurship. The idea of raising capital is daunting to many, but there are many more options than most realize.
Even if you think you cannot do this, you may be able to do more than you think. You need to rethink your roots. Can you start your business from your home, thus cutting out the cost of a location away from your home?
Can you cut down the scope of your business in the beginning and start small, maybe with just one or two products that you think will be your best sellers?
If you start small and work from home, you can cut labor costs by being the sole employee. This method is a slow start, but by growing slowly you allow yourself to use less capital and build your own funding to support growth as you go.
Another option is to raise the capital you need in the form of investors. It doesn’t have to be Shark Tank style big time investors. This could be friends and family, or it could be in the form of crowdfunding. Crowdfunding is an option that is becoming more and more popular, and many are seeing success.
You simply post your plan on a crowdfunding site, and watch your capital roll in by the $10s, $20s, or $100s until you have what you need. That is of course, if the investors on the site find it worthy.
Grants are another option for raising capital. Often times the Small Business Administration will have information on what is available?
Small business loans are the first option most startup projects jump to. Whether it is your first or your last option, it is definitely a viable one.
There are choices for those with all types of credit and at all stages of the process. Whether you have great credit or collateral will most likely only affect your rates and terms.