Business Finance Options For You:
For most company owners, there will come a time when they need to secure business finance. Perhaps you are thinking about starting your own business and you need some money to get it up and running?
Maybe you already have an established company and you want to brand overseas, open up a new department or invest in a new product? No matter what position you find yourself in, this post can give you the helping hand you require.Maybe you already have an established company and you want to brand overseas, open up a new department or invest in a new product? #businessfinance Click To Tweet
Establish How Much Money You Are Going To Need
Before you can start looking into the different options that are available, you are going to need to establish how much money you need. A lot of people go through the hard work of securing finance, only to discover they have totally underestimated the amount they require.
This is often the case when it comes to starting your own business. Experts like Your Company Formations can assist you with all of the legalities in this regard, helping you to understand the process you are going to need to go through so that you can accurately determine the expense.
On the flip side, simply borrowing more money because it is available to you is never a good idea, as you are going to end up spending more in terms of interest rates and other fees.A lot of people go through the hard work of securing finance, only to discover they have totally underestimated the amount they require. #businesstips Click To Tweet
What You May Need To Buy For Your Business
- Insurance. Since I became full time here back in August some expenses were not foreseen. Take for example business insurance. To be covered against lawsuits, etc it cost Inspire To Thrive just over $1,000/year in special business insurance.
- Taxes. This is a big one here in Rhode Island. Business taxes eat up approximately 40% of your profit. ☹
- Tools of the Trade. Oh yes, tools for social media management and content marketing can add up. I’ve gone premium with plugins, Canva, Triberr, Scoopit, domain and hosting to mention a few along the way.
- Marketing. Next, I purchased pens and business cards. Then at the end of the year I joined the local Chamber of Commerce. Let’s not forgot those Facebook and Twitter ads too. If you do not market your business people will think you are NOT in business!
- Vehicles and Mileage. Visiting clients takes miles going back and forth as well as needing a reliable vehicle.
- Office Equipment. Just this morning I went out to purchase a new chair as my body was feeing the effects of sitting a lot. I can’t wait to use it when it arrives tomorrow.
Good morning, Lisa! We hope you enjoy the new chair. Have a great day! ^AH ?
— Staples US (@Staples) January 7, 2019
Therefore, these are just some of the things you will need to run an online business. As Ryan Biddulph says do spend the money on your own domain and hosting. This tip is so important for online businesses!
Finally, even offline business with a blog or website should have their own domain and hosting. I’m amazed how often I run across local businesses without them today!If you do not market your business people will think you are NOT in business! #business #marketing Click To Tweet
What Options Do You Have When It Comes To Business Finance?
Hence, there are many different options available to you when it comes to business finance. There is no right or wrong answer, or magical formula.
It is all about determining what is going to be right for your company and the unique situation you find yourselves in. As with anything, what is right for one business most definitely is not always right for the other.
Ideally, here are some of the main options you can select from:
• Business finance from a bank.
• Borrowing from friends and family.
• Business grants.
• Lending from finance companies.
• Using your savings.
These are the five most common options you have at your disposal. If you find yourself on this page, then it is unlikely that you have the savings to draw upon nor do you have friends or family members that are in a position to help you.
In fact, this is an option that doesn’t appeal to a lot of people because they don’t want to be indebted to someone close to them. (I know I would NOT. It can damage relationships!)
Aside from this, you could try and get a business grant. It is always worth a try, but you need to be realistic. These grants are exceptionally hard to get your hands on, so you certainly shouldn’t pin all of your hopes on this.
Finally, don’t rule this option out until you have explored it though. Lending from a finance company is a much easier approach to go down then lending from a bank, as banks tend to have much stricter criteria in place in terms of lending.
Important points to consider when lending money from a finance company
It is important to end up with the right loan for your requirements. For example, you need to sit down a draw up a financial plan and determine how much money you really require.
Of course, you are going to end up paying back more than you have borrowed, so discover the rate of interest, and make sure you can afford the repayments. Therefore, you also need to assess the repayment terms too.
How long do you have to pay the money back? Will you make repayments on a monthly, quarterly or yearly basis? If you consider these factors, you can be confident that you will end up with the right loan for you.
In Conclusion on What Are Your Business Finance Options
Securing business finance can be difficult, but if you have the right attitude and you use the right options that are available to you, you can make it much easier than you imagined.
You always need to start out by determining how much money you are actually going to need. Then, once you have done this, you will be best placed to explore the options that are available to you.
Therefore, you will know what is accessible and what isn’t, so that you can work out how to put your best foot forward.
I’d love to know in the comments below if you have ever had to secure business financing for your online or offline business. Please leave a comment below so we can discuss.
Lastly, if you business is in finance be sure to check out our marketing tips for financial businesses!