The moment you decide to put up a small business, it is on the assumption that you’ve done your homework. A greater part of your endeavor is ensuring that you have enough capital to jumpstart it. Once the business gets going, the harder part comes next.
In the course of your operations and depending on how your business took flight, you begin to see hitches. The most pressing of those hitches is the cash flow. There’s no worry if your sales can cover operating expenses or at least break even at the start. It’s typical for any business to experience birth pains. However, sustaining or keeping your business afloat will be your priority moving forward.
Here are some ways you can do to fund your small business and keep it going:
- From your own pocket
Small business operators usually draw for their own pockets at the start. Unless your business is generating substantial income, it’s not ideal because you can end up depleting your savings that your source of funding dries up.
- Take out personal loans or credit card advances
This step is perhaps the quickest way to address your immediate funding needs. There’s no pressure to present collateral or security to obtain cash. You can source from personal loans providers for a straight up loan payable within a certain time frame. On the other hand, credit card advances are costly and will only burden you instead of providing support.
- Invite equity partners
If allowing others to share in your profits is acceptable to you, then invite outside parties, if not relatives or friends, to invest in your business. They might be able to infuse the much-needed capital sustain your operations.
The investor(s) will partake of the profits based on your sharing arrangement. One drawback here is if your investor is not passive. In such case, they could be actively involved in the operations. Conflicts can arise due to differences in managing the business. That’s something you’d rather avoid so as not to hurt your small business altogether.
- Look for strategic partners
The three options are good but only to a certain extent. As a small business owner, what you need is flexibility and not be pushed to the corner. You need a continuing funding not a stop-gap solution like personal loans or credit card advances. You also want to manage the business the way you deem fit without any intervention from an investor. Thus, only a strategic partner can help you realize your objectives. This option is the ‘ideal’ option. The prospect of achieving success is far greater while simultaneously rewarding your efforts in the process.
What can the strategic partner offer?
Do not think of the strategic partner as an individual or institution extending the traditional loan. There is now a network where like-minded people converge for the purpose of opening new horizons to small businesses.
Funding is still the primary activity, whether it’s providing funds or obtaining funds. The strategic partner will act as the facilitator and enable the unobstructed flow of funds. If you’re confident about the strength and potential growth of your small business, there is a corresponding enthusiastic party willing to assist and see it through.
Are you curious who the strategic partner is? It’s time to end your curiosity. Visit your future strategic partner at http://www.pdmcapital.com/. If the success of your business is what matters to you, you can be sure it matters to them just as much.