Crowdfunding

One of the main issues with starting a small-scale business is obtaining the finances. By their very nature, small businesses are based on small investments and quick profitability. Here, we will deal with ideas that will help you get things going and keep you afloat until you become completely self-sufficient and profitable.

It’s important that you note that some of these crowdfunding sites require payment-processing fees, while others will demand a full stated goal in order to help you get funded.

…or, in other words, using your own cash for financing your business, has obvious benefits — cash is interest-free, liquid (meaning easily accessible) and, perhaps most importantly, you don’t have to give up equity. Similarly, the downsides of bootstrapping are quite clear. Firstly, this is a personal investment that will likely set you back much more than leveraging would. Secondly, if you don’t get profitable within a reasonable time period and you will simply run out of cash.

So, should you go with bootstrapping? Well, it depends. The questions that you should ask yourself are these:

Another clear problem is that this type of financing is a rather slippery slope: invest too little and you won’t risk too much, but the chances of your business crashing and burning before it even starts are larger. On the other hand, invest too much and you’re risking losing much more than your future legacy, although this does mean more stability.

People cringe at the mere mention of the word ‘loan’, but in truth, this is a completely legitimate, frequently used means of obtaining funding. In fact, this might be the most common form of small business financing, but the trouble here is that there are many different types of debt financing:

SBA loaners benefit from softer requirements and reduced rates, but require collateral. In other words, if you have cash on hand, equipment and inventory that you can do without, SBA is going to be right up your alley.

In truth, there are many more ways of obtaining financing out there, but we’ve selected these, because they are widely considered best options for small businesses. Regardless of whether you opt for crowdfunding, bootstrapping or taking out a loan, one thing is certainly the most important — get well-informed before proceeding any further!

Related posts:

Make a subdomain. A subdomain is like a separate folder on your Web server. Put a site in a subdomain to keep it separate from everything else. Choose Drupal and click Install. Put your site into the…

Pela primeira vez senti saudade pura Exatamente uma semana após pararmos de nos falar Veio-me a falta, sem nenhuma situação específica atrelada Aquela falta que aperta o peito Parece que estou…

Inspired by a simple act of kindness