Starting a new business is always tough. A number of businesses fail within a few years of starting. These days, the COVID-19 pandemic makes starting a new business even more challenging. However, with the end of the pandemic feeling like it is right around the corner, you may be thinking this is the right time to finally launch the business you have been dreaming of for a while.
One of the main hurdles to starting a business is funding it. There are different ways to go about funding a business. What works best for you will depend on your individual circumstances. Take a look below at some strategies you may wish to employ for funding your business.
Four tips for funding a business
- Save — The first and most obvious idea is to save your own money and use it to fund your business. The trick is, how much are you willing to risk contributing to your business without compromising your other long-term goals, such as saving for a comfortable retirement?
- Reach out for assistance — Do you have friends and family who support your business venture? Consider reaching out to them to see if they would be willing to invest in your startup. Make sure that the terms of the investment are clear, so no one has inflated expectations that can strain your relationships.
- Look for investors — Banks, credit unions and wealthy individuals are often willing to invest in business startups they believe can be profitable in the future. The catch is that they usually want a portion of ownership and profits or they want payment back with interest by a predetermined date.
- Apply for grants — Some businesses qualify for grants that can either help your startup or improve your operations if you have already been operating for a while. Grants can be competitive, but there are plenty of options out there that you may be eligible to apply for.
Talk to a ProVise CFP® professional about funding your business
Starting a new business is exciting, but you have a lot to think about to make it work. Besides funding your business, you need to think about supply and demand, day-to-day operations, retirement planning and employment status. Let us help you take the load off your plate by working closely with you to form a financial plan for saving for your business and reaching other long- or short-term goals.
At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.
Are you ready to talk to a professional about funding your business? Contact ProVise today to schedule a complimentary consultation.