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5 Financial Tips for Surviving a Start Up

5 Financial Tips for Surviving a Start Up

 

When you  are starting a small business, there are sure to be some expenses  required that can set you back from achieving your goals. Surviving the  startup costs of a small business is a challenging task and it’s  something that you have to be prepared for. Below, you will find 5  finance tips that you have to keep in mind as en entrepreneur or small  business owner.

1 – Consider short-term loans, but understand the repayment terms

Short-term loans are commonly referred to as payday loans and they  are a quality source of funding for any small business. Startup costs  can substantial and if you don’t have enough cash, a short-term loan can  help. The problem with short-term loans is that they have to be repaid  fairly quickly. When you are starting a business, there is an  opportunity to earn that money back within the first month of opening.  However, if you are not positive that your business will be profitable  from the very beginning, then this may not be a risk you are willing to  take.

2 – Find a profitable investment and scale up

One of the most effective ways to afford the startup costs of a new  business is to invest. Investments can take you from low dollar amounts  to high dollar amounts quicker than anything else can. The best way to  invest your money is to find something profitable that you know works.  This could be something related to your business, such as selling your  products or services online, advertising door to door, or something  similar. The point is, if you can do something to generate revenue  without paying the startup costs, you can use that profit to launch your  business.

3 – Only spend your money on the essentials

Less is more when it comes to funding the startup costs of your  business. It’s okay to start your business without the fanciest  computers, nicest payment processing system, or most attractive website.  Find ways that you can cut costs and save money by downscaling what you  need to get going.

4 – Outsource services to local contractors, not big brands

One of the best methods I’ve found to save money on business startup  costs is to hire local contractors off of Craigslist for miscellaneous  things that you need done. If you want to install new flooring at your  business, there is sure to be a local contractor that will charge much  less money for the install than a small business would. This is a great  way to reduce your startup costs.

5 – Consider a bank loan

Bank loans are the traditional path to funding a startup. Bank loans  have low interest rates and they can be repaid over a much lengthier  period of time than a short-term loan requires. This makes them very  affordable funding options for small businesses today. If you want to  get a bank loan, be sure to compare multiple banks to one another and  choose the financial institution that offers the lowest interest rate  and most flexible repayment terms.

Author Bio: Stevie Clapton works for FastCash.org, they provide outstanding articles on everything financial and also can provide you with personal short term loans.

Published by Valentine Belonwu

My name is Valentine, founder of this site, an entrepreneur working as a moderator at Bizsugar a small business community news site. Connect with me on Google+ at Valetine Belonwu

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