To start a business, you’re going to need some money. Even if the business is just for fun or won’t generate profit, you’ll still need money to start that business.
Unfortunately, it’s not very easy for 16-24-year-olds to start new businesses unless they have significant capital. If you want to be an entrepreneur but don’t quite have the cash to get started, here are some tips on how you can finance your business dreams.
#1 Create a business plan
A business plan is essentially your roadmap for success. Generally speaking, business plans aim to accomplish four things:
- (1) contain an explanation of what you do
- (2) how you will do it
- (3) who will benefit from it
- (4) why your business is unique
#2 Find funding sources
Ideally, you should have some ideas about how you will fund your business before you start it. You might even want to research entrepreneurship grants in your area to help get your business off the ground faster. If you lack funding, don’t give up yet! There are other options for financing your business dream. Here are just a few:
• SBA loans
• Crowdfunding
• Franchising
• Savings and Investments
#3 Get creative with your budgeting
Many young entrepreneurs struggle with finding the money to fund their business idea.
There are always options, though!
Many businesses can get up and running for little or no cost at all. For example, if you already have a computer and an internet connection, you’re one step closer!
If you are just starting with nothing to work with, though, don’t fret. There are still many ways that your business idea can start up without much money coming in initially. For instance, ask for volunteers or employees that can receive training instead of being paid.
You can also reach out to local businesses, groups, and organizations for free advertising on your new business’ behalf. For example, if you start a dog walking service, ask local dog-friendly businesses to display fliers on their counters to be visible to all incoming customers.
Another great money-saving tip is to do as many things as possible yourself.
For example, if you plan to start a website design company and don’t know how to code yet, learn! Then you can save thousands on your business by doing those tasks at home or hiring just one employee instead of paying an agency that specializes in web development. That way, you can put more money into your new business!
#4 Start small and work your way up
You might not be turning a profit right away, but that doesn’t mean you should give up on your dreams.
Find ways to make some money while you’re doing the legwork necessary to start your new business. Whether it’s getting a part-time job or freelancing, there is always some way that you can make money until your business becomes profitable.
#5 Consider self-employed loans
Self-employed loans are a great option for people with minimal or no credit history or young entrepreneurs who haven’t started building credit yet. They allow young business owners to borrow money for their start-up expenses and don’t require a cosigner.
#6 Network like crazy to get your name out there and meet investors
One of the most important things that young entrepreneurs can do is find other people who are interested in their specific business idea.
These people could be potential employees, volunteers, mentors, lenders, or even future customers.
No matter who they are, meeting new contacts is key in growing your business! The more people you meet, the greater the likelihood of gaining the necessary support to start your business.
Final Thoughts
Hopefully, these tips will help you finance your dreams of being an entrepreneur!
If not, consider a self-employed or personal loan from a major company that provides these services.
Look into grants and crowdfunding for help getting your new business on its feet.
This way, you’ll be able to start small and build your brand from the ground up before investing too much money into it!