One of the biggest challenges for entrepreneurs of all ages is getting ahold of startup capital. But for young and first-time entrepreneurs in particular that task can be even more formidable. Banks and investors typically like to see that you’ve started successful businesses in the past or that you’ve worked in your chosen industry.
Fortunately you can rely on yourself — you are, after all, your best source for capital. Here are 10 ways to use your own best asset: You.
Income.
If you have a job, keep it, or consider just reducing your hours. It will be tough to startup while you’re still working, but that constant, stable source of cash could help sustain you and your startup until it starts generating enough money on its own.
Savings.
Before you startup, save as much as possible. This personal nest egg is your best source for start-up capital, as it can help further your business plans without asking others for money.
Downsize.
If your personal expenses such as rent and car payments are too high, you may not have enough left to start your business. To keep your costs down, live in student mode — where cereal and noodles are daily staples — even if your income has moved up. You may need to consider more drastic measures: Moving back in with mom and dad, for instance, is a common strategy among startup entrepreneurs.
Investors.
Some people see long time even when there's no glimmer of hope, try to find such people and don't give up no matter how many doors are slammed in your face.
Credit.
While you should avoid crazy spending sprees, your credit cards may be a valuable resource while you’re getting started. Look for cards with no annual fee and a low interest rate on balances.
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