One of the last and final steps in starting your own
business is to obtain the money required to start your business. There are many ways to do this in today’s
world. The most common way to raise
startup capital is through a loan. This
works for many people, but you have to have a good credit score, which is not
so common these days. However, if you
can obtain a loan for your startup capital, go for it. I only say this because once you have paid
the loan off you will no longer owe money to others. Another way to obtain startup capital is
through investments. Find someone who
loves your business idea and is willing to lend you the startup capital to get
things rolling. This is a good avenue to
go down if you cannot qualify for a loan.
However, keep in mind that they will want a percentage of your
profits. In the end this will end up
costing you more money than the loan.
There is also crowdfunding. This
is where you use a website, such as Fundable, to raise the startup you need
through donations from people worldwide that believe in your idea. However, these investors will want something
in return. You will have to reward them
with free products or give them equity in your company.
Like I said in the beginning there are many ways to obtain
startup capital, but they will all cost you in the end. This is why I have chosen a very
untraditional approach to raising startup capital. I have decided that I will collect donations
from close family and friends to help me get things started. Because Battle Mind Records is starting off
as such a small business, I do not want to start off by owing all kinds of
money. I want to be able to grow the
business quickly. I also plan to start
releasing singles to raise the money that is needed to put the full album
together and to start growing Battle Mind Records.
Also never rule out the fact that there are many different
types of grants out there. You should
always look into what kind of grants your business may qualify for and apply
for them. You never know, you could
raise all of your needed startup capital through grants. If not research all of the financing options
to decide which will be best for you.
Also, never count out your friends and family. They may be willing to help you for nothing
in return you just have to ask them. I
personally feel that one of the best ways is to start selling one or some of
your products prior to fully starting your business. This can help bring awareness to your new
business and help you raise the startup capital needed to hit the ground
running.
