Published On: Thu, Sep 21st, 2017

What If You Want To Start A Business But Have No Funds?

So, you’ve got a great idea, a fantastic product you want to share with the world, but the only problem is you don’t have the funds to make this a reality. Many people around the world don’t have the funds to start their own business. But you’ve got to start somewhere and somehow. The truth be told, there are many ways you can actually get the money you need to get your project off the ground. Before you go hunting, there are a few things you should be doing to get yourself prepared. Essentially what you’re trying to do is pitch yourself and your business plan to a complete stranger in order to get investment. They might not always want to just hear about the business plan, but more about how you will use their money. More importantly, your financial reputation will be scrutinized, so you’ve got to go through some procedures before you go move forward.

What If You Want To Start A Business But Have No Funds?

Photo by – The Orkla Group

 

What an investor might ask

You can find investors at many places, but they can crop up out of nowhere. They may have heard about your business purely by word of mouth, or they may have stumbled upon a product or service you provide. The key is to make sure investors feel comfortable with you, as a person. Investors are independent and will be using their own money, as opposed to companies and firms that will have pooled resources. The investor will ask you personal questions that will dive deeper into your character. They might love your business plan, but for them, when it’s their own money, they need to know you’re responsible and level-headed. They will ask you if you’ve ever handled large sums of money before and if you’ve ever gone bankrupt. It’s conceivable that they might test your sternness with regards to how you discipline your employees because every node is connected together and screw-ups have a knock-on effect.

Image by – AMISOM

Going to the bank

Using banks as points of investment is used a lot of the time, especially for entrepreneurs trying to start their first business. The money you will get, if it is signed off by the financial advisor at the bank, will come in the form of a loan. You will be expected to make monthly payments to the bank, after a set date, which might mean having to do so with the loan itself. However before you can get cleared for a loan of such a magnitude, ranging in the region of above a hundred thousand, the bank will do a thorough financial check. It’s very advisable to learn how to improve your credit rating by going to repair.credit. Here you’ll find many ways of getting out of the red and into the black. You’ll learn about different factors that do affect your credit score even if perhaps you weren’t aware they did. Crucially, it also tells you how to negotiate with creditors and keep them on your side.

You can go the personal route if you want to, but bear in mind investors will judge you on your character as well as business plan. For some people, this is too much because despite a great business, if they don’t trust you, they’re out of the deal. A bank is a much more formal instrument for investment. Indeed it will come in the form of a loan, but if you have a good credit rating, you can raise the number, and the bank will still be confident in you.

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