So, you woke up one morning with a fantastic business idea and while you have absolutely no idea where it came from, the more you think about it, the more certain you are it would work. Of course, you need to write a business plan but before you do that, you need to think about capital.
Here are a few different ways you can fund a business startup.
- Refinance your home – The equity in your home could be used to fund a startup; talk to a mortgage broker and he can set up a second mortgage that gives you access to your equity. Make sure you approach a broker and not a lender per se, as the broker has associations with many lenders and they can find a loan package that suits your lifestyle. In the event your equity is insufficient, you could combine it with a business loan.
- Apply for a business startup loan from an online lender – Talk to one of the business loans experts Sydney and before you know it, the funds will be in your account and you can start working on that business plan. You get super-fast approval, usually within minutes rather than days, which is refreshing.
- Source a private investor – If you can convince an investor that your business plan works, why not give them a slice of the pie in exchange for essential funding? It is important not to lose your control of the organisation; a sleeping partner has no say in how the business is run, which is obviously important.
- Look for a working partner – Perhaps you know someone who could bring something to the table; partnerships are successful mainly because each partner has skillsets and together, they are stronger. A straight 50-50 split is appropriate if the partner is willing to come with 50% of the capital. Here are a few cost-cutting strategies that you might like to implement.
- Gofundme – Many entrepreneurs find the money they need from an online platform like Gofundme; create a good profile and business presentation and you might get lucky! There are a few digital platforms that connect entrepreneurs with investors and nothing ventured, nothing gained. Your business plan needs to be top-notch if you want to attract serious investors; ask a business coach to take a look before you upload it.
- Take out a personal loan – Online lenders are not interested in your reason for borrowing money and if you have a reasonable credit score, there’s every reason to expect a fast loan approval.
Once you have secure adequate funding, you can focus all your efforts on creating a winning business plan; register the business with the Australian government and you are ready to rock and roll! Don’t take anything for granted and keep your eye on the prize!
