How to Fund Your New Startup Business

Are your trying to secure enough capital in order to fund a new startup business? Gathering this large sum of money can be difficult, but it is possible. If you’re looking to become a new small business owner, gather this money by...

Getting the Family Involved

The first (and most common) way people will fund their new startup businesses is by borrowing money from a family member or close friend. This is considered to be the least risky option for you since most friends and relatives won’t charge you an interest rate, ask for collateral, or give you a strict repayment plan. However, make sure you establish if this is strictly a loan or if you just acquired yourself a silent business partner that will now split any and all profits.

Heading to the Bank

As long as you have good credit, assets, and something to put up as collateral (your home), you have a good chance of being approved for a business or personal loan. Going this route to fund your new business will most likely provide you with more money upfront to get things going. Just know you will have to pay interest while also following a strict repayment plan.

Keeping Costs Low

Once you get the ball rolling and your new startup is beginning to take form, stay away from any unnecessary costs. You’re going to need all of the capital you can to get this business off of the ground.

• If you need a physical location, don’t over-estimate the size you need — if not, work out of your home to stay rent free.
• Do not hire employees if you can do the job yourself. However, jobs like doing the taxes  and any manufacturing might be better off left with actual professionals.
• Stay away from traditional phone systems as they can cost a fortune, especially if you need to add more phones to the plan later down the road. Opt for a VoIP business phone system as it is roughly half the price of a traditional phone system and is easily expandable.

Having enough money to fund a new startup business is the first speed bump to overcome when trying to become a small business owner. When you want to keep costs low, opt for a VoIP phone system that’s installed and serviced by Reliable Voice & Data Systems. To learn more or to schedule a free estimate, give us a call at (877) 385-6657.

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