The journey of starting a business can be very stressful and financially straining. There are numerous ways that one can acquire financial assistance. We all want to be Kings and Queens of our own kingdoms but it is important to remember that accepting help is a strength and not a weakness.
By Tshegofatso Tube
Andy Warhol once said that making money is art and working is art and good business is the best art. Starting a small small business can be financially straining but that does not mean that you cannot find other means to make it work. You can have your business and enjoy it too. As a small business owner who has just dipped their feet into the business world or an experienced business owner who has hit a financial wall, it is important for you to know that there are other routes that you can take to support yourself and your business.
Bootstrapping
Chase the vision, not the money; the money will end up following you. As a business owner, you may be very worried about the amount of capital required to start a business and we all know that finances play a very important role in the running of a business. Before looking for funding externally, you can also start with yourself and the money that you already have. Bootstrapping is a process in which an individual uses their personal finances to start their business. It really is a great representation of ‘building from the ground up’.Looking after your finances is important for a business owner because you give yourself a great advantage when you are in need of financial assistance.
Small Business loans
Small business start-ups tend to seek help from banks by applying for business loans. There are numerous banks that are able to give financial assistance to small business owners but the loans do have very strict requirements. As a business owner it is important for you to make sure that your credit scores are good and to ensure that you do not have any bad debt connected to you. You are a representation of your business. Despite the fact that business loans serve as a great way to get your business off the ground, loans do come with their disadvantages. As a business owner it is your responsibility to find out about the interest rates that the bank offers as well as the repayment terms. Loans come with their own set of risks and for that reason, entrepreneurs should work towards being financially educated.
Angel Investors
Your small business needs to have a very good business plan in order to help you locate good investors. Angel investors are successful individuals who invest in a lot of start-up businesses and they do this in exchange for shareholder’s equity. Angel investors are able to bring a lot of value to your business apart from financial assistance. They are able to connect you with the right people in your specific industry as well as give you advice on business practices. In order to find good Angel investors it is important for you to put yourself out there and network well. You are in charge of your business’s representation so you have to “go big or go home.”
Read more:https://www.vukuzenzele.gov.za/funding-small-business-development