5 Tips on How New Entrepreneurs Can Fund Their Business

Every good business starts with a good idea. It’s that Eureka! moment where you realize that you’ve got something special that could change the world you live in. Whether it’s a brand new, unique invention or a business based on an already existing idea, you’ve got to have that stroke of inspiration that’s enough to drive you to leave your boring job in the corporate world and start your own business.

If you’ve watched business investment shows like Dragon’s Den or the American version, Shark Tank, you’ll know exactly what I’m talking about. The budding entrepreneurs in those shows have either come up with their own products or are looking to build their own version of a business idea (classic example: restaurants and cafés). Whatever your business idea is, you’re bound to run into your first obstacle as soon as you’ve set your heart on building it: funding.

Unless you’re already an extremely well-established businessperson who has enough money to keep investing in more businesses, this won’t be a problem. But the chances are, you’re not. You’re just a regular person, looking for the right place to start. Trust me, I’ve been there and I’ll be honest – it’s not easy. But if you believe enough in your business, why would you let that stop you? I didn’t, and look where that got me. I’m running my own bail bond business and it’s a success.

I’m no expert, but I’ve certainly learned a lot of things along the way to building my business. From one entrepreneur to another, I want to keep passing on the lessons I learned. Here are 5 tips on how you can fund your aspiring business.

1) Go for a small business loan. When applying for a small business loan, it’s a lot simpler than trying to get a loan from a bank, especially if your credit history is too limited. Collections are automatically withdrawn from your account either daily or weekly, so you won’t feel the pressure at the end of the month. So, from the 10-20% profit I would be getting from my bail bonds, part of it would go to my repayments for the loan. Also, you’ve got to have a passion and a driving force behind everything. I used the fear and anxiety I was feeling from taking the loan as well to propel me forward in my business and also help the community by providing the most affordable bail bonds Lubbock TX has ever had the opportunity of taking advantage of.

2) Get help from a potential partner in exchange for something. Other similar business might be able to help you scale your business if they like your idea. Any amount from them could help you in a big way, even if it means losing some equity. If you make the right kind of deal, you won’t even have to lose that much. You could also exchange an investment for services.

For example in my business, I could have found a partner who worked closely with defendants in criminal cases, such as someone in the Public Attorney’s Office. This way, if a bond agent was needed for someone, I would provide the service in exchange for an investment in my business – so that the investor gets their money back.

3) Plead your case to friends or family. It might be hard to find a stranger who believes in your idea strongly enough to help you out. This could work because those close to you will believe in you without looking for a high return on investment. Of course, this could end badly if something goes wrong with repayments or terms but as long as professionalism is practiced, it should turn out fine.

4) If all else fails, fund it yourself. Use the savings from your current job (if you’re a student, put money aside from your allowance) plus all the loose cash you have lying around and find out the cheapest way you can operate your business. It’ll probably take longer than seeking outside help, but the upside is that the business is all yours.

5) In connection to this, do not overinvest. One of the biggest mistakes you could make as an entrepreneur is to fall into this black hole. Start small; build from the ground up before you throw all your cash into advanced technology systems, overstaffing, or unnecessary inventory. With my business, I started locally with a bail bonds store in Lubbock, Texas. When the gears started to run smoothly, I finally plucked up the courage to expand locations and offer services for El Paso bail bonds and even started operating out of houston as well.

As you can see, there’s no such thing as free money. You’re going to have to work long and hard to get your business up and running. Don’t worry though, you’ll get there. You just need to know what you want so you can plan ahead. There’s no shortcut in this industry so take the right steps to achieve your goals. Pretty soon, you’ll see the fruits of your labor.

Start Your Own Business

cat111Everyone would like to be financially independent, but this is not always easy to do. You can find a good job that pays well, but not everyone will also be satisfied with this option. The second thing you could do is to start you own business.

This doesn’t mean it will be easier, but it won’t be impossible either. It’s about working a lot more than you would work for a 9 to 5 job, and you will have to be really dedicated to it. If you start on this road, you can say that it’s not allowed to quit. The success is within your reach, but you’ll need more than money to invest in it.

Characters - Business meetingHere’s what you need to know about this whole process.

The Idea

Yes, you have to start from somewhere and you will need an idea for creating a business. If there is something that you are specialized in or if you know some handcraft, then you can start on it. Some people choose to make jewelry, other people want to start a coffee shop, while other people want to work with flowers. There are plenty of ideas that can work, but you need to fiind one that offers you pleasure.

That’s right – pleasure and passion – if you do something with passion, you won’t feel like it’s a job.

The Budget

Business-ideas-to-increase-your-revenuesYou will also need to have some money to start this business. There may be needed different materials, a location, and different licenses and so on. All these will cost you something and you will have to be prepared for them.

Make a list with everything you need for starting your business, and write the price next to each item. For example – the rent for the location, the price of the materials, the price for the first contracts with the vendors and so on. Make sure you will be able to sustain your business for a few months at least, before it starts to produce profit.

The Plan

Small-BusinessThat’s right, you will need a business plan. This is not just a sketch, but this is a paper that will prove to be extremely useful, especially if you want to get your business financed by investors or by a financial institution.

The business plan will have to contain everything, starting with your name, location, presumed number of employees, domain, license, prices of the materials needed, the price of the rent, how you plan to advertise for it – meaning marketing options and so on.

Make sure you’ll have this plan designed by a professional, and it’s better to talk to a business lawyer to have it done right.

The First Steps

growing-businessTaking the first steps in this area is not always easy, but with a good plan, a good budget and determination you can make it work. You will have to constantly learn new things and be professional in what you do. Running a business is not always easy, but if you do it with passion, it’s almost successful.

You’ll also need to have a good team to help you – even if some business ideas are made for one person – like creating handmade wedding invitations, other business ideas require you two or three employees – like starting a pub or a coffee shop.

Don’t hesitate to look for professional business advice whenever you need it – it’s not a shame and you will always learn new things from this. You can also read books and go to business workshops or take special classes. Whatever you do, remember that you are working for your own benefit and you don’t have to quit, even if this seems hard at first.