It is possible for you to own every aspect of your company but it doesn’t happen overnight. It may takes years of hardwork and pain to get your company off the ground. Self-funding business is not an impossibility. In fact, it is attainable if you do the right thing and work hard. However, any self-funding business owners you find out there would tell you that it is very rewarding achievement.
Thinking About Funding Your Own Business
The idea of self-funding business might sound too far-fetched but it is not entirely true. When you jump into the entrepreneurial world, you need that individualism and optimism to keep moving forward because it is not a field for the faint of hearts. To be your own boss starts from something that may look so insignificant. You need to have that drive keep going no matter what is facing you.
Seeking out fund from investors
It is helpful to seek out investors’ help but the journey can be very steep as well. You need to make calculation whether or not their help is worth all the risks. You also need to know if they want too much from your business for too little money they invest in. If you decide to self-fund and skip investor, making sure be prepared. You also need to understand that self-funding your business means your road to success may take longer and harder. But of course, remember that the pay off will be bigger and more satisfying.
How about seeking out funding from a bank?
Not many banks are enthusiastic about an unproven business. It is unlikely for a bank to just hand out a fund that you need to build your business. A bank is often more interested to help highly profitable and fast growing business. They won’t even hesitate to offer the loans.
Best strategies to self-fund your own business
If you decide to skip investors and banks, you may consider self-funding your business which also comes with its various risks. Here are some tips to help you do it:
Do as much work as you can yourself
It is best to pay as few people as possible in the beginning to prevent your business to die early. Spend as much time to dedicate yourself for your business.
Maintain outside income
It may not only take months but years before your business starts generating revenue, let alone generating profits. Hence, maintain outside income to help fund your business.
Pay your bills on time
You may have to sacrifice some of your luxuries to simply pay for monthly minimums and mortgage. However, not paying the bills can be damaging for your small business especially when it just begins.
Increase your credit line
It will be helpful if you can ask your bank to increase your credit line, so get as much credit as you can.
Be patient
Always be patient with the process because no success is instant. You may have to give up a lot of things to self-fund your business but always remember your purpose and drive.