SOMEONE ONCE SAID: “Business… it is a dog-eat-dog world out there.” Perhaps this nimble statement has ground not to object about. I mean, these days, businesses in the high-streets are dying every day due to the dire weakness in the economy. Although, with this said, the promise of people like Peter Jones are continuing to slap a modern image to the business scope, by claiming youngsters are as likely to pick up a laptop and a "Start Your Own Business" book as they are a Playstation 3 controller. Thus, does this mean business can be regarded as a fantastic and rewarding opportunity for anyone with the whetted interest of running their own?
Stop, however, because before you can transform your interest into a proper venture, whether the idea is in retail, wholesale, or somewhat on a different level, one of the fundamental aspects of starting-up a business is the question of Raising the Finance required.
In this series of guides I shall introduce you to simple and sharp ways you can raise capital to develop your business from the ground upwards.
So You Like The DIY Scheme?LET US CONSIDER you are a sole trader. If this is a truthful claim then the DIY Scheme to raise capital for your venture is probably the best way of starting-off. This is due to the reason your venture is to be founded small. I am assuming your maximum goal is to reach 1 million. So, on the flipside, you could look at this method as not your preferred beginning for a business, although, it can be very affected in the initial days.
Certainly, there are very good motives why self-funding your business is a suitable decision. First off, when you take your money into your business there is no one to satisfy or have to apologise to when aspects take a turn for the worse. There is no large CEO at the head of the table or another owner waiting for your blood, or a bank waiting for its cash back. It is simply you and your cash, which does help towards the fact you should work tougher and firmer. Everyone works harder when their own cash is being injected into something.
Secondly: Would you allow yourself to slack when you knew by doing so your own money is draining away? Remember the old saying "Time is money"? Well, it is certainly true and no more crucial then when you place your own money into your business.
Yet, at some point when you initially consider doing this, it may strike you the affordably of it is not a great option, and to be frank, no one likes to borrow from friends or family, especially when there is no initially guarantee there shall be a return. So, hopefully, you have already designed a business plan you can go back to and refresh to suit your spending for the start-up of your business.
Weigh Up Each OptionJUST BEGIN TO ASK YOURSELF: Can you start smaller? Is it feasible to buy less stock and make money to help grow the business? With my business Amazing Discount Trades, I bought £220 worth of books from wholesale and sold them through eBay and Amazon Marketplace. The profits did not succumb too much, especially when it came to considering the eBay and Amazon costs and also the postage, but it the beginning. I was content as it revealed my business to a small group of eBay and Amazon users.
One fantastic method to raise capital, and one which people might retire from, is to employ your assets and sell them. Now, this does not mean you need to go overboard and market your house away, but just think for a moment...
If you have the strong desire to enter the business market then there is little time to watch television, learn to play the piano sat in your hallway or watch your collection of DVD's over and over. For every car lover out there, even your pride and joy can go at some point. If you have a Mini and you pawn it in for cash to inject into your business, your Mini might turn into a BMW one day.
With the auction sites like eBay, and whilst we are on the subject of television, programs like Cash in the Attic on air, there is no excuse to have a quick rummage through your own basement or attic for valuables. Remember, what one man's junk, is another man's treasures.
I Have An Investment/Property
INVESTMENTS HAVE A TWO-FOLD METHOD for raising cash to help your business. Fair enough, looking at this the simplest way is better. Let’s say you have savings stowed away in the back somewhere, whether in ISA's premium bonds or a simple saving account like HSBC's Flexible Savers Account. If those accounts have enough income then they could be handy to dip into. Typically, all I am trying to get you to think about is whether and where you have money put away for "a rainy day". This method is not something I would like to fumble over as it is the money you might have been saving for years - a holiday away, your kids educational future - no matter what for, just be careful and do not take quick steps when decided this route.
Another notion is whether you have a second property and the consideration of marketing it. This is a great asset you can liquidise and transform into the money you need for your business. Your house is maybe a good source of income. I have already mention not to rush into marketing your entire house up, though if you have lived it in for over 25 years the chances of you having some money tied up in it is probably strong. There is the option to perhaps re-mortgage the house for a couple thousand pounds. This obviously means your rate would rise for each month, but they will be spread over 25 years.
No matter how you welcome this, whether you decide on one method or a combination, hopefully you shall be capable of raising the cash. In my opinion this is the best way to get off the ground with your business. I shall utter again that if anything fails you have no one to blame and payback but yourself.