Every business needs profit in order to generate profit, a scenario where it is a circle of spending. This is a rule that every entrepreneur knows, especially those businesses that require production for their products. Money is required to create your products and the ‘bread and butter’ of your business usually, just like you invest in the business you are prescribing. There is a need and urgency for money to create the right business path. Once you understand what direction you want to take, you can invest on the right tools to obtain success for your goals. First, you should draft out a written plan for your start up in order to see what is required for its success.
Once you have drafted out your start up plan, find ways to obtain money to finance your goals. Banks give out loans for these kinds of occasion, so make sure you check with your bank about loans and financial support before you ask. Depending on your credit score and financial history, banks will judge you as permissible to have a loan. It should be noted that a bank loan usually comes with interest, as the institution of banks require profits in return for their loans. This is the world of business, as nothing is really free and you, as the entrepreneur boss, need to be aware that your start up company will generate enough profits in order to pay back the loan with interest. Always consider the future and think ahead when you take a business loan.
Another form of loan can come from family and friends, a ‘love loan’ if you think about it. When you explain your quest for a company to the people close to you, they will understand your need for production, supplies, etc. It is a well-known trait that most people, who first start working, require assistance from their families. This type of assistance can be in the form of networking, knowing the right kind of people to get the job, or convince a landlord to use their space. As mentioned earlier, another form of assistance is a loan, a sum of money that you may or may not have to pay back. Usually, the latter is the case, as the money is given to you because your family/friend want you to succeed. If you grew up with parent’s giving you an allowance, then you might know that they don’t expect you to pay it back. However, it is up to your own choice whether you want to pay them back, out of the goodness in your heart.
One last way to get the capital you need is to start working yourself, at another job, no matter the line of work. This fact is the reality of many entrepreneurs, where they have to start menial work to raise money. The original founders of McDonalds had to endure long hours of truck driving before they could start their own fast-food restaurant. They had to save up and cut out unnecessary costs, which is basic knowledge in starting a business; you need to focus on the essential supplies and have enough savings in case you need to bail, when sales are bad. Be inspired by other start up companies that started off small, and learn from them on how they accomplished success.
Babak Eslami | Writer
