Top 10 Ways to Fund a Business
One way to fund a business is to use money you already have as long as it does not jeopardize your day to day living. The best part is that you do not have any interest expense. The bad part is there is lost opportunity cost. In other words, what could that money be making for you in other ways. If you are seriously planning a business with the idea you will succeed and persist without exception, this is a great way to fund your business because you are investing in yourself. So, way number one is:
1. Checking or Savings Account
Credit is the number one way people start a business. They use OPM, or other people's money. Simply make the credit card payments one of the monthly expenses, like paying the phone bill. Number two way is:
2. Credit Cards
a. Raise Limits on current Credit Card
b. Apply for New Credit Card
Again, credit is the number one way people start a business. They use OPM, or other people's money. Make the loan payment one of the monthly expenses, like paying the phone bill. Our number three through seven way is:
3. Line of Credit or Refinance Home
4. IRA or 401 K Loan
5. Signature Loan
6. Student Loan - You must be taking some educational classes for this one.
7. Life Insurance Policy Loan
What other investments or valuables do you have that you could borrow against, pawn or use to fund a business? Number eight way to fund a business is:
8. Other Investments
Another way of funding a business is to borrow money from friends or family. There is a big problem with this one in some cases, so it is necessary to set it up properly with loan papers and a payment plan which is followed exactly. Remember, your relationships are at stake here if you do not do what you say you will do. Number nine is cauciously:
9. Love Money (Borrowing from Friends and Family)
Our last method and one that works great is to have a yard sale or sell something, especially if you are not using it. Things that have value and are not being used are taking up space and not benefittin you, so let's put their value to work. It is also possible to sell something that you do use, but could do without for a while until you can afford to buy a better one. So, our last method of funding a business is:
10. Yard Sale, or sell something
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Donna Schwartz
Excited about Life to come!
Emerald Enterprises
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