If you’ve got your hands on the next big idea, make sure you have what it takes to see it through to completion. Going from nothing to a self-sufficient company takes time, energy and – most importantly – resources than many first-time entrepreneurs would think, and having too little of any can often mean the end of your fledgling business. So how to ensure that your company has the money needed to go from scrappy, hungry startup to a fully functional business? Read on to find out a few of the most common ways people have got their new company off the ground.
The most common way entrepreneurs get their company started is through the generosity of their friends and family. From a few dollars here and there from multiple people to finding someone who believes in you enough to underwrite the cost of fulfilling your first order friendship loans take a variety of forms.
Less advisable but still equally common, using (and abusing) credit cards is another way many have got their business off the ground. The downside is that unlike friendship loans, your credit card company is much less inclined to offer you infinite extensions on repayment, so ensure you keep up in order to avoid losing all you’ve built.
Liquidate your assets
Not everyone has assets worth enough to finance a whole business, but for those who do, taking a hard look at what you have and what you need can mean shedding some things you can do without in order to make your dreams come true. From cars to houses to boats, commodities and shares, there’s a market for everything.
Singapore has a flourishing angel investment community, always hungry for bold new entrepreneurs who may have the next big idea. More suitable for businesses that have already passed the initial stages of their development, outside investment can help your business grow from the embryonic stage to a real player in the local and international market.
The newest innovation in business funding, crowdfunding gives you not only the money to begin your business, but a readymade fan-base hungry for more information about it. With numerous platforms including Kickstarter, GoFundMe and Indiegogo becoming bigger and bigger, it’s becoming a way for businesses to source the capital they need.
One of the most traditional ways of funding a business, getting a business loan from a bank relies on you being able to convince them of the merit behind the business idea, as well prove that you’re a responsible and reliable businessperson. The high minimum loan principal makes them inaccessible for many people.
Ideal for those looking for a quick injection of capital at a level that suits their needs, moneylenders are most often able to provide a smaller loan faster than banks, helping those with more modest needs get started in business.