How do small businesses funding?
When you deciding to build your own business, the first thought is whether you have enough business funding or business capital? business funding is indeed the most important factor in opening business. Without business funding or business capital, it seems like a business plan will stay in a dream and difficult to realize.
The amount of capital you need depends on the type of business. If the business that you will start is a grocery store, for example, then the business funding will be greater than when you start a street vendor hot dog. Likewise, catering business funding will be more expensive than funding to create a publishing business where publishing can now use digital media.
Please note, finding a business funding is not as difficult as a few years ago that only through conventional lines such as banks. Now there are many ways to get business capital more creative. Want to know more? Please check out 10 smart and easy ways to get funding for your business:
You can invite friends or relatives to open a joint venture with a capital venture. Venture funding in a Joint venture will also be profitable because the capital and the work will be divided equally, including also dividing the losses. However, you should do a written agreement about the sharing of results between you and the partner to avoid future conflicts.
A loan from Bank with a guarantee
Banks are the most frequented places people who need business funding. You can apply for credit to a bank to increase your business capital but of course by guaranteeing some assets or goods that you have, the percentage of interest varies depending on the bank, the type of credit and the return time you can choose yourself
Borrowing from a Bank without collateral
You can also borrow money to the bank using the facility of uncollateral credit. This loan is a favorite of the capital or funding seekers because it still earns money even without providing any guarantees. The negative thing about a bank loan without collateral is a considerable interest because it takes the shortest credit tenor to reduce interest swelling
If you have assets such as property, motor vehicles, gold or other profitable investments,
Why not consider being sold to add business funds?
if your business is successful you can buy things that were sold earlier with a better type
You don’t like to be indebted to the bank for feeling the flowers are too high? You can use savings to become a business funding. This way is much safer because it doesn’t risk being indebted.
Love your assets? why not just pawn your assets to an official pawnshop? This includes being profitable because you still earn business capital, while the assets remain intact. But don’t forget to redeem it
Borrow from friends or relatives
Another way is trying to get a loan on people near you for example to your friends, siblings, in-laws, cousins, and others. Loans from them may not be as much as you borrow in banks, but loans are usually interest-free.
There are also ways of gaining capital from your prospective customers. Wow, can he? Of course, it can. You can ask potential customers for a pre-payment of your services, such as 30 percent. The advances can be used as the capital until the work is completed and get the full payment. This kind of way is often done in catering, clothing screen printing or laundry business.
Franchise system means cooperation between business owners and businesses. The profit sharing is based on the agreed agreement and the business owner will provide all the facilities and funding. This system does not issue a lot of capital for your business actors. But you have to choose a well-known brand franchise so that chances are bigger.
The last way that is currently the trend of searching for business funding is sponsorship through certain websites that supported by advanced Internet technology. The cool name is crowdfunding. The way you offer the kind of business you will make through one of the crowdfunding sites and the interested visitors can be a sponsor who donates the money. Instead, you can pay a reward in accordance with the rules of the site.
To be honest, business funding through crowdfunding is usually not as large as funding like mentioned earlier. But it’s worth trying
How do I get crowdfunding for my business?
Define a business First
Before choosing some options on how to get business funding as mentioned above, it’s a good idea to decide what thing you should do first. You should know in detail what you have to do including the risks that will be borne. When you are sure to do business independently, there is no need to wait for your business to start now. Based on the writing above, choose how to find the business capital that is most suitable for you and congratulations on being an entrepreneur.