It has never been easy to get a business off the ground and the current economic climate has only made things more difficult for young entrepreneurs.
But there are options out there if you are looking to finance a business project. The following are a some ways to go about financing your start-up:
The first person you should to for help is yourself. If you believe in the venture, you should put your money where your mouth is. You may be taking more of a risk but you will be getting more of the reward than if you have to start splitting the equity.
Borrowing money against the equity in your home, using personal credit cards and taking out personal loans is another solution that doesn’t require you dividing the equity of your business.
Your family and friends are all potential investors.
If you do not mind dividing the equity of your business, you can always bring someone on board who is business savvy but instead of paying them a salary, offer them a stake in the business.
A lot of people get nervous when discussing debt and that’s not such a bad thing for most consumers and businesses. Debt isn’t a toy for enjoying life’s pleasures; it’s a tool for building financial capacity and growing business operations. Here are some tips for using debt to help develop financial prospects.
The new financial year has begun, so there’s no better time than now to get your personal finances in order and move toward a brighter financial future. Make this the year for paying off credit card debt, balancing the personal budget and making some healthy returns on investments. Here are five tips for getting your finances in order:
Small and medium enterprises (SMEs) operating with a limited cash flow are in need of funding support.
The Organisation for Economic Development and Co-operation conducts an annual report that addresses the availability of financing to SMEs.
The concept of debt is misunderstood and seems to carry with it a sense of apprehension but we as Australians seem to have a love hate relationship with debt.
For small and medium enterprises (SMEs) debt is not always a terrible thing as it allows them to expand their operations.
Lack of capital funding is one of the most significant issues faced by many entrepreneurs. While an entrepreneur may have a great idea and be incredibly passionate, the absence of operating cash means that a business will struggle to remain viable.
It is also a difficult situation when entrepreneurs who have already experienced success choose to devote all of their personal net wealth into their business. In this situation, personal finances are very likely to suffer.
In the wake of banks choosing to only pass on a fraction of the interest rate cuts made by the Reserve Bank, credit card customers are rushing to pay off their credit card debts. People with car loans and personal loans are behaving in a similar way too
Figures recently released by the Reserve Bank show that in the 2013 year to March, the average credit card debt was $3256.70. This marks an average reduction of 2.4%
According to many financial commentators, it is possible to cut spending and reduce costs by taking a good hard look at your budget and finding tangible ways to make savings.
According to Nicole Avery, managing a household budget with a large family of five children, on a single income, requires discipline and a watchful eye on spending.
Financial commentator and author of the Herald Sun’s weekly column, Barefoot Investor, Scott Pape, writes that the 60-20-20 concept is a money management plan that according to Pape, allows you to set a budget which will then run on autopilot provided you stick to it.