Every great business idea must be put into action before it generates any income. However, if you have no capital, it will be impossible to build your enterprise. There is no free lunch, and you must spend for manpower, equipment, packaging, internet service and communication means. No matter which industry you want to penetrate, it will be difficult if you do not have enough cash to spark it up.
Here are five realistic ways to fund your startup.
- Closest Circle
You can ask your family and circle of friends to lend you a hand. One advantage is you can negotiate more openly depending on how close you are to them. If you are lucky, you can even borrow without interest charge. However, if they are giving you a flexible loan in a legal way, you must draft a contract to avoid future dispute.
- Small Business Loan
If you want to get a small business loan, you have to shop around for a licensed moneylender Singapore like Cash Mart. Banks do not give small business loans that easily if you are a startup and can’t afford to have collateral. Add to that, banks take their sweet time when processing business loans for startups.
Got savings? Fund your own startup and start small for a while. Make do with what you have for now. There will be no interest charge and you are free to plan your finances without worries on any payments or bills in case you experience any downfall.
If you think that your business idea is catchy enough, then you can take it to crowdfunding platforms. There are various crowdfunding sites. Some cater to artists while others focus on businesses with innovative products. However, be careful not to over promise anything to your investors. You might frustrate them if you are unable to deliver your promise. Also, take the time to read the guidelines or regulations.
- Keep Your Day Job
Successful entrepreneurs who profess that they just took a leap of fate may be inspiring, but doing it yourself is too risky for your future. If you are still unsure about your funding, then just keep your day job and fund your startup with your salary for the meantime.