So it’s been six months since you came up with that crazy plan to start your own business—and it’s going pretty good! You’ve done your research, you have a game plan. You have a lawyer to explain the whole purchasing process to you, and you understand how much you could make in your first year if it doesn’t flunk. You’ve started to work on finding premises, deciding how you want the place to look in order to attract customers, and loads of other things that will help you to make your business great.
But also keep in mind that the first year of business is the hardest. You can’t just jump into the business—that’s a recipe for disaster. However, there are a few things that can help.
One is adequate start up capital. Start up capital helps you to buy equipment, buy furniture, decorate, and work on repairing the premises. It also helps to cover rent for the first year that you have your business and to keep it up and running until you make enough for it to sustain itself.
However, there are several ways that you can get start up capital.
You can go the loan route. Loans can be pretty substantial and more than enough to keep you going. But once you get to a certain point, loans can be extremely problematic. Look at it this way—if you do manage to make it to your second year, home free, you also have to pay back that loan. If you are barely making enough to sustain your business as it is, making payments on that loan can be almost impossible. On the other hand, it can also be a breeze. It all depends on how things work out for you and your business. If they don’t, well…it could mean the repossession of your business and a heavy debt that you have to pay back.
On the other hand, another means of getting start up capital is by grants. Grants for working capital aren’t that hard to get. Your main problem is being able to make enough through your donors. You also have to give them a proper incentive. After all, they will invest in your business; they just need a reason.
However, they also don’t lose their money if you don’t get enough. The reason for this is that the money will be returned to the donors if it doesn’t meet your needs. Why?
Well, think of it this way. You need the money…but if you don’t have enough, your business will potentially fail. This doesn’t mean that you should shortchange yourself either. If you do that, your business is even more likely to fail. Either way, you’re going to have issues. But in the case that you didn’t make enough and did keep it, there would also be pressure to start a business that would fail. Either way, you’d be pretty much out of luck and they would be out of money. It may seem unfair, but really, it’s making life easier for both you and your donors.
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