Raise Small Business Start Up Capital Without Borrowing
Did you know that you can find small business start up capital without borrowing from banks, family or friends? If you’ve been dreaming of the financial freedom that comes with being your own boss — only to have your hopes and dreams dashed by the harsh realities of finding the business start up funding you need — read on! Let me introduce you to the only method for successfully starting and growing a small business without BIG bank loans, bootstrap financing!
There are many shoestring financing tactics being touted by business experts as being the best way of financing a bootstrapped business. As a Start Up Business Efficiency Expert, allow me to help you sift through all of the methods that simply do not work! Let’s examine them here:
Loans from Family and Friends
Although this may have worked successfully for Sir Richard Branson of Virgin Airlines, this method of start up financing doesn’t work for everyone. In many cases, it causes “bad blood” between family members and broken ties for old friends.
In my own family, I have seen the devastation that unpaid start up loans can have on family relationships. A member of my family started a retail store by borrowing from 3 other immediate family members. To make a long story short – the business went “belly up” and the loans were never repaid. This caused a major rift in our family, when one of the three members that loaned some of the money became very angry about not being repaid. This kind of damage is not easily repaired. My advice? Don’t borrow from family and friends to raise small business start up capital! It just isn’t worth the pain.
Credit Card Financing
Caution: This is a big mistake! Although I have advised many of my clients not to go down this road, some have ignored this advice – and with disastrous results. I implore you not to trust the advice of any start up expert that would suggest credit cards as a means of business start up funding. Please don’t just take my word for it! Read the true life stories of three small business owners – caught in the credit card crunch. “Credit Woes Hit Home”, by Jane J. Kim is a prime example of why you owe it to yourself to do thorough research when considering some “so called” bootstrap financing options. Read the article without buying the newspaper! Check it out for free online by copying and pasting this address in your browser:
Savings and Investments
Using your savings is only wise if you have first created a financial plan for your start up. I take my clients by the hand and guide them step-by-step through this process, as it is foundational for any business desiring to start up without borrowing. If you skip this vital step, your new business just isn’t going to make it. Don’t risk your life’s savings because you’ve taken the wrong advice. Research; research — and again I’ll say it — research! The importance of planning and being well prepared with a bootstrap financing system that actually works, is key to your success.
Raising the Business Start Up Capital You Need
Let’s be real, all businesses need a continuous inflow of cash to succeed. The problem arises when you don’t adequately plan for cash flow fluctuations. Understand this: there will be a time lag in between the period in which you start your business and when you can expect your business to start earning a profit. To survive and conquer this time period requires realistic and well conceived planning. You simply must have a proven and effective system in place to keep cash flowing through your business.
To raise the business start up funding you need requires an expert crash course in bootstrapping. Did you know that there are literally hundreds of free resources that can help you fund your start up business? The trick is knowing how and where to find them. Get started on the road to start up success today – without borrowing. Find free sources of funding and bootstrap your way to start up success!
© Kimberly Kelly 2009 – All Rights Reserved Worldwide.
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