Ways to Fund a Business Startup Plan

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A unique business idea does not come around all that often. When you have an idea for a business that you are positive will succeed, you want to test your wings and see what you are made of. The problem with many would-be business owners is having the capital to actually put the plan into motion. This may seem like an insurmountable stumbling block, but before you give up, there are a few options you have when you have nowhere else to turn.

1. Save: As tedious and time-consuming as it sounds, if you are serious about your business, you may be able to save the money. If your current occupation does not pay anything besides your monthly bills, you might decide to get a second or third job. Delivering pizzas for a local joint at night or distributing newspapers on the side is a great way to build up funds. You can also try to reduce your living expenses to speed up the process of saving.

A disadvantage to this idea is that this can take a lot longer than some of your other options. So if the idea is dependent on time, it may not be something you can do. However, an advantage to this way is that you can start your business with little or no debt. That means the first penny you are able to make above your expenses is yours!

2. Business Loan: If you have not saved the money or you feel like your idea just cannot wait, you can always try for a business loan. You will need to draw up a very detailed business plan for the bank to see and a very precise estimate of how quickly you can repay the money.

The disadvantage to this is that you may not get approved, but if you do, you are in a large amount of debt. The advantage to this is that you have your startup capital and you can begin your business.

3. Investors/Partners: One final way you can come up with the funds to start your business is by approaching investors or a possible partner with your idea. You may be able to find someone who is willing to fund you and let you do the work. Or you might be able to find someone who will split things with you fifty-fifty, both work and profit.

A disadvantage of this is that you have to split your earnings. However, the advantage is you get your business funding and can get started.

Just because you do not have the funds to start a business sitting in the bank does not mean you are out of luck. Above are just a few of the alternate avenues that you can take to reach your goal.