How To Self-Fund Your Business
You have an idea, you’ve researched your market, you understand the risk …. how do you find the money to get it off the ground?
We wish we could say that investers are standing by or the banks are ready to lend. But the truth is, most people won’t qualify for either. If you are in a sector where you have a minimal viable product and need help scaling, this post isn’t for you. This is for entrepreneurs that need to first prove themselves, their idea, and self launch. And, in most cases, that means bootstrapping your way through your first few years. Once you have proven your market, profit, and scalability, then we have a case for lending. Until then, you still have options outside of crowdfunding (which we know many of you do with friends and family).
We often hear from soon to be business owners that they don’t want to use their own money to open their business. And, we get you. It’s absolutely a good thought …. if you have the means to walk into a bank and get lending or credit based on your cash deposits. If that’s not you, we need to look at what you DO have that might be options for getting a hold of the cash you need to start.
Of course, before you look at what you have, it’s best to start with a budget for your business. What are the start-up costs and ongoing operating costs. Really drill this down to every penny so that you are clear on what money you need and the risk associated.
Once you have a budget, spend some time on this asset map. It’s a tool to help you realize what you and other potential business partners have to bring to the table. Some of which could be used for personal loans (which you’ll need as a new business) and other assets can be borrowed against or cashed in. We hope this opens your mind to some things you might not have thought about.
If you find yourself still short, it’s a great exercise to understand financial health and what you can do going forward to build that for you and your business.
If you are ready for lending options, get matched with an advisor that can help you navigate options and be your support throughout the process.