How Did You Fund Your Business? What Methods Would You Recommend For Others?
How did you find the capital to start your business?
I understand that some fields have very high startup costs, like in real estate, building cars, or starting an airline. But... there are many people out there with business ideas that seem much cheaper to get off the ground, and they get stuck at funding.
I funded all startup costs for my PR Firm out of pocket. Both me and the firm are 100% debt free, and have been in business for 10 years.
Is there anyone else who took this route for their business? And if not, how did you fund your business?
Update 2/2/17: I updated the question to prevent any further confusion. I'm not looking for advice or consultation services on how to fund my business. Just curious to know how other people funded their business, after watching so many Clients and other entrepreneurs balk at the idea of funding out-of-pocket, the way I did. Thanks!
Answers (1-10)
I'd say read a bunch of books first. And the next first thing is to test your market before moving forward.
The 4-hour week-work by Tim Ferris
People * You by Jeb Blount
Fanatical Prospecting by Jeb Blount
E-Myth Revisited by Michael E. Gerber
Predictable Revenue by Aaron Ross
David Allen's Getting Things Done
Tools of Titans by Tim Ferris
Hi Alexis,
I have two words. Business Plan. We don't advise anyone to leave their day job without one!
Looking at your question and then your comment, I'm not sure if you are asking about starting a business or funding a business...but in either case, a business plan is critical and it is a must to get some sort of written plan BEFORE taking any other steps towards starting a business. If it's not in writing it's not real!
Business plans are fluid and will most likely change as you grow, however like a travel map, even if there are some detours along the way, it's easier to arrive at your destination if you have one.
If you need help getting started with your business plan, simply Google for FREE templates! You'll fine about 136,000,000 results.... so there's absolutely no excuse to go off "willy-nilly"!
And don't hesitate in reaching out for EXPERT HELP to create your plan. I dare say there are dozens of resources right here on Alignable. My company does not provide business plans as such, however we do prefer to work with clients who can provide one.
As B2B service providers, it makes creating their Web site, Mobile app and yes, even their marketing strategy easier.So if funding is an issue, think of this….it take less time and saves big $ when our clients have a clear cut business plan in place, before they start shopping for business assets!
Much success!
Out of pocket! And a lot of Prayer!
It's been tight & there is still a ways to go, but we are now up & running. 15 Photographers, 5 Editors & a Sales Team.
OPM. the key to building your business is in Other Peoples Money. There are trillions of dollars out there to fund any thing you can imagine. The key is finding the right situation for you and your business. Considering that a good mutual fund returns less than 10%, and the stock market is up a whopping 3%. Investors and private citizens are looking for better options and venture capital can return huge dividends. Using your own money or credit is fine if you are in the position to do that, but most are not. It is also risky, bet wrong and loose your credit rating and your personal assets, no matter the structure of your operation. If you have noticed as a new business you are basically signing personal guarantees on everything you finance from your rent on your location to small business loan, even with the SBA, you will have a personal guarantee, which will hold up in collections, in spite of your corporate protections. This is why most entrepreneurs end up with bad credit. There are plenty of options for every situation when it comes to business loans, find the right one. Always start with your bank or a reffered Broker, who will work for you not the lender.
We Help our Clients use their personal credit to fund their businesses as well as to establish their business credit. It's best to start as a hobby. Once you begin to generate enough revenue to be able to separate your personal funds from your hobby's funds, then you should transition it to a business. We refer our clients to "Legal Zoom" to incorporate. Our motto is "We Help You #Succeed!" #TeamSuccess #TeamBLAM!
That is a good question and I commend you for your bravery. apparently you had studied and knew exactly what you wanted to do and made plans. Many people fail to plan and end up with a plan that fails. Check the market. Is your product or service something that's used a lot today and seems to have a place in the future? Personally I like multiple streams of income, but it might not be necessary in some cases. I have Network Marketing multiple streams now under one umbrella and I paid over $300 to join and it's great. So it also depends on what type of business you want to start. Some time people start with a home based business to save money and then grow to their dream which would have required getting a loan before.
In any case I suggest doing a lot of reading and checking before you invest. Look before you Leap!!!
We bootstrap. No funding so far and hopefully not ever.
It totally depends on what type of business you want to start. Tell me more and I will give a more complete answer.
I self-funded my business and kept my costs to a minimum so that I can offer great pricing to my clients. For those who need funding, I'd recommend that they speak with a start-up professional like Lauren Fusilier so she can do market analysis and run through pricing, products, competition, etc.
Alexis Chateau, I agree with you and also wonder why most people balk at using their own money to start a business. I believe because we live in an instant gratification society people don't realize the importance of patience. Rather than watering the seed and waiting til the flower grows and blossoms they want buy the flower already in bloom. The problem with that is you don't have a good understanding of the foundation (dirt) the seed took root in. Do the roots run deep or are they shallow and will the flower stand when the winds come or will it simply lose it's grasp and fly away in the wind to die. Everybody wants to succeed but yet few plan to succeed.