You have a business plan, you have a supplier, and you have a marketing strategy. You’re almost ready to start a small business. Only one problem left. The most important foundation of it, cash. You don’t have it or it’s not enough to start. Or maybe, you are planning to take your business to the next level but cash is still a problem. Whatever it is, if you’re looking for a way to get cash for your small business, this post will give you tips and ideas on where and how.
The Man in The Mirror
Before you look anywhere else, exhaust your self-financing capabilities first. Maybe you can tap on your personal savings, sell personal assets, take on extra gigs, etc. This way, you won’t have a debt to someone but yourself. And yourself may be able to wait longer to get paid until your business grows in your vision.
A Helping Hand
If self-financing is really out of the option, then you need to extend your search. Pitch your business to your family, to a close friend, or to your lover. We’ll never know, maybe they will see a promising businessman in you. And they will lend you what you need. Just never forget about paying them, whatever happens. Your relationship with them will suffer if you don’t.
A Lending Hand
Well if you’re really confident with your business thriving in the future, then consider applying for a loan. For small businesses, you can try Small Business Administration (SBA) Loans. Go to sba.gov for more information. Other than that, if you have a good credit record with your bank, then you can also apply with them.
Organizations that can help small businesses:
- P2P Platforms
- Crowdfunding Platforms
If you can pitch your business in a realistic but enticing way, you might be able to attract investors to fund your business. It could be another organization or business, it could be a friend, etc. But keep in mind that having in an investor to business means they will own parts of it. Also, you might want to take a look at Angel Investors Organizations such as Go4Funding, MicroVentures, Tech Coast Angels, Investors’ Circle, Golden Seeds LLC, Band of Angels, Hyde Park Angels, Alliance of Angels, AngelList, Angel Capital Association. Simply they offer to invest in your business in exchange for an equity stake.
Let’s say during the time that you are developing your product, there have been a number of people who already showed interest in it. Take that opportunity to generate cash. Make your product available for pre-order so they can pay you even if your product launch will be a month or two later.
Make a Deal
Alternatively, if your capital can still buy inventory but not on the full scale of your envisioned opening, try to negotiate with your supplier. Maybe you can ask them to make a down payment first and fully pay it on a later date.
If you can’t find the most suitable way for you to get cash for your small business, don’t stop here. There’s a way for those who are really willing to do anything for success.