It’s not easy to build a new business and you may have particular concerns about launching a new idea at a time when there seems to be a certain amount of economic uncertainty in the air.
There’s absolutely no doubt that the global economic problems of 2007 and 2008 have taken their toll, with many entrepreneurs reporting that it’s becoming increasingly difficult to gain access to finance. With banks reticent to lend, there are clearly struggles associated with raising required levels of capital.
How can you deal with such circumstances? I think that the answer can come from a number of potential sources. In the first instance, you may of course look to different ways of funding your business.
Family and friends
If you really feel that you have an idea that has the potential to be extremely profitable, then you may look to those people who you already know as a source of funding. There are clear advantages associated with this approach, including the fact that friends and family members may well be more willing to loan the money to you.
It should be stated, however, that this is an approach that is not without its difficulties. In the first instance, it’s reasonable to expect that those providing the money may well wish to have a say in how the business is run. Are you happy for this to be the case? You’ll need to give that subject suitable consideration, before accepting any funds.
You’ll also need to think about the fact that there is a personal attachment here to the money that is being provided. That’s a very different scenario from the case of a financial institution doing the lending, where you are dealing with a business transaction.
That inherently personal nature of the financial involvement means that there’s considerable scope for existing relationships to be damaged. Before accepting help from those close to you, it’s worth reflecting on the potential harm that could be done to such relationships.
Crowdfund To Start Your Business
The subject of crowdfunding has received a considerable amount of media attention recently, with a variety of platforms now providing access to this source of funding. By seeking relatively small amounts from a large number of investors, you may be able to gain the capital that’s necessary to make headway.
My own experience in this area would suggest that it’s often easiest to gain interest in ideas that directly relate to technology and gadgets. Creating excitement around your own business plan may prove somewhat more difficult.
You also need to be aware of the fact that you will almost certainly be forced to disclose quite a lot of information about your plans. That information will effectively be in the public domain, which can leave you feeling uncomfortable. If you truly have a novel plan of action, then you won’t want it to be copied.
The idea of becoming a franchisee can be appealing, particularly given that you’ll have access to a business model that is already known to be successful. As is discussed online at Total Franchise, banks may also look upon such a model more favorably.
With a broad support network available to you, there could be an opportunity here for your business to grow over time, beyond that initial period of getting it established.
Are there downsides here? It would seem to me that the biggest problem that you could face will be associated with finding the right opportunity, particularly if there are limitations associated with your specific location.
A low capital model
If you appear to have specific problems that are centered upon your ability to come up with the capital that’s needed at the outset, then could you seek to establish an alternative type of business?
There may be options available that involve less capital at the outset, but which still offer the potential for you to grow a business organically. Almost inevitably, such an approach may involve more of your time. For those who are time-rich, however, this can represent an excellent way of getting started.
Many successful entrepreneurs struggle at the outset of their careers, before finding success at a later stage. What binds them together is the real drive to succeed. If you’re looking to replicate what has been achieved by others, then your priority should be to ensure that you remain focused on your business goals.
There may be small hitches along the way, but it’s critical that you should think about your long-term plans. You can create and sustain a successful enterprise, as long as you have the belief in your own abilities.
When problems do crop up, try to concentrate on creative solutions. There will be times when you feel negative about your chances of meeting your aspirations. The key is to bounce back quickly and consistently.
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