Everyone has an idea for a business that they think is a winner, but unless you have very generous family or lots of business experience, it can be hard to find sources of funding to start your idea. Luckily, there can be ways to start your business with minimal investment, and here are some tips to get yours off the ground when you don’t have a huge amount of cash.
Get a personal loan
A small personal loan can be a good way to get the basic equipment or supplies you need to get started. A loan from a company such as Nimble can be a good way to get a small cash injection, and it gets paid quickly, without you needing to make a full business plan. Just make sure you can afford the repayments and aren’t stretching yourself too thin.
See if you can start up with little
You don’t necessarily need to start your business with a lot. Many entrepreneurs have humble beginnings, and there are a number of big companies who started with nothing or next to nothing. Business experts believe around 80% of startups are self-funded rather than getting funds from elsewhere. Have a think about the most basic components of your product or service and how you can deliver this without spending a lot. It will make you more inventive in the long run and make you appreciate every penny.
Try to get investment from family and friends
Many businesses start with a small loan from a friend or family member, but there are some things to keep in mind if you go this route:
- If your business doesn’t succeed, you’ll still need to pay them back
- It can strain personal relationships
- It can put pressure on your loved ones, meaning they may struggle financially until you pay them back
It’s important to think very carefully about this option, as while it has upsides, it can have a lot of downsides too.
Look for government help
You may be surprised to know that the government is trying to encourage small business startups, and there are a number of grants and loans you could potentially apply for to get started. The main downside with this sort of lending is that you often have a long application process and they’ll usually want to see a solid business plan, so it can be a tough job to access support. You may find you wait a long time for the cash too, so bear that in mind if you are in a hurry. Government help can be thin on the ground, but if you can access it, then that’s great.
Starting a business doesn’t necessarily mean starting off with a big lump sum. Lots of businesses start from basically nothing and don’t have the millions to immediately invest in big equipment or salaries. However, that doesn’t mean you have to wait to start your dream. With the right amount of hard work and determination, many businesses can be started without needing to find an investor, and there’s no telling how far it could grow.
