The majority of the startups we are aware of today are trying the best to have an idea on the amount of time they can keep the lights on before their businesses finally run out of cash.
The thing is, either a startup runs directly into a cash crunch at a point in time, or they are interested in accelerating their growth. However, there are times whereby startup founders may want to make use of their personal finance to keep the business floating.
Funding With Your Personal Finance
There are lots of entrepreneurs and even small business owners that have embarked in self-funding their startup with their personal finances for a significant time frame.
Sometimes, they do this until their funding opportunities that are outside become much more realistic.
Nonetheless, if you do believe in the vision you have and you have refused to take failure as an alternative, you should surely feel very comfortable investing your personal finances in your own business.
When making use of your personal finance, you will have to be very smart in this game and highly frugal. Also, making use of your personal finance can work in your favor sometime later.
This can work in your favor as your story can be strengthened when the time comes to seek extra funding for your business from investors that are outside.
Like we mentioned earlier, no one believes in your business as much as you do and if you are skeptical about using your personal finance on it, then that is a red flag. Well, unless you have other quick access to funding the business with a cheap capital cost.
Other Strategies For Funding Your Business
Some of the startups we can find today pieced together their funding from diverse sources. While no single source is better than the other, everything relies on your runway, access to resources, living expense, and even capital cost.
It does not matter if you are a startup that is searching for initial seed capital or you are already operating a small business and need money to grow, you have to be flexible and keep accurate financial numbers.
Some of the ways to fund your business without the use of your personal finance include:
Although there are risks linked with funding your startup with business cards, you can always explore it depending on the amount of money you need, how quickly it is needed, and your credit score. However, before you do that, you need to be sure that your startup will be profitable so you wouldn't be losing out on 15-25% APR of a credit card.
Crowdfunding will enable you to promote the vision you have for your startup products and even take orders plus pre-sale inventory before you begin manufacturing it.
With marketing and planning, crowdfunding may likely take months to raise the money you need successfully.
To Wrap It Up
From friends and family to crowdfunding down to angel investors, there are lots of ways to raise money for your startup. However, if you want to go through the route of personal finance to keep 100% of your company, it is not so bad either.
Try coworking today to save money so more of it can go to your startup.