The decision to finance your own dreams and passion is always overwhelming, and majority of the small business owners are dissuaded by the daunting prospects of increased expenses and risks. It is important to work towards developing a progressive, and pragmatic approach that is focused on risk-gearing, minimizing your expenses, and getting started with a small-scale of operations. We want to avoid higher interest debts (such as credit cards), but what other sources of funding are available:
Crowdfunding
Crowdfunding is a remarkably popular strategy that has allowed many start-ups to find a commercial space for rent and initiate their operations, only to soar astounding heights of success. There is a multitude of crowdfunding sites and platform that help you raise money for your creative projects and goals. More information can be found at https://learn.indiegogo.com/benefits-of-crowdfunding-essential-guide/.
401(k) Financing
Entrepreneurs who have nestled and nurtured a 401(k) over the years can use these funds to finance their startup business. The tax code allows certain provisions that help you use the funds stored in your 401(K), if you follow the correct legal procedures and regulations. For example, if it’s an active 401(k) you may be able to borrow up to 50% or $50,000. As this often requires an active 401(k), this is an option to consider before you leave your job and may require advance planning. Check out CNN for more details.
Grants
Grants can be difficult to find. We found a grant for starting a new business. Horizon Commercial Leasing offers a $2,000 grant for opening a new retail location in Columbia and Spartanburg South Carolina. They claim to have offered three grants recently. You can find out more information about their grant and free training on opening a business at Horizon Commercial Leasing.
Bank Loans
Even though lending regulations and rules have become excessively strict, commercial banks continue to offer a variety of loan packages and products to help small business owners’ finance their dreams. A home equity line or loan is often an option if you have some equity in your home as well. So, what’s the harm in applying? You can browse through the loan catalogues of multiple banks and financial institutions before making up your mind.
Competitive Rate Commercial Lease
We often look to financing to help us achieve our goals, but what about finding a more affordable place to lease? Commercial leases are several years in length and this adds up. Cutting expenses, such as finding a competitive commercial lease, are often overlooked. Financing almost always has interest costs. Cutting expenses may save you more than financing in the end- and is a more conservative.