Setting up a business without enough money, savings or funding can be a disaster waiting to happen. Many individuals and business owners who develop a business concept without the correct funding or back up of cash flow for when things go wrong will often find keeping their business and their head above water, incredibly difficult. Money unarguably moves your business forward by providing necessary and essential fuel for growth and development. The revenue that your business makes will obviously provide some of the funds necessary to keep your business afloat, but you should never rely on revenue alone. This is why outside or third party funding funding comes in handy.
Payroll Finance and Funds
It’s important for any business to pay their employees on time each month, or week. The date in which an employee is paid should be stuck too, to ensure that they do not become gruntled or unhappy. However, revenue and customers do not always pay companies at the right time or when they should, which means one month you may be out of pocket. Additional funding acts as backup and will always allow you to pay your staff on time and provides a shortfall created by any timeline gap between sales transactions, paying employees and invoice payments.
Inventory Finance and Funds
Once you have launched your company, it’s important to keep an eye on your inventory and keep it maintained in order to have enough products to sell when in demand. If your company produced and manufactures its own products you need to ensure that your business has enough funding to produce your inventory or enough funding to buy inventory from a manufacturer.
Before launching your business development concept you don’t necessary need funding right away, but when it’s time to physical build the business, funding becomes a crucial aspect. Startup funding can be incredibly useful, especially for paying for things such as hiring employees, marketing, equipment, insurance, licences and facilities.
How can I raise these necessary funds for my business?
There are many different methods which entrepreneurs and business owners can use to kickstart the fundraising process. Here are just a few simple ideas which you may wish to consider:
Crowdfunding can be a great way to achieve the necessary funds you need to get your business started or to cover the costs of particular aspects of your business. With so many crowdfunding sites available today it means you can go right ahead and kickstart your crowdfunding project in no time at all. Popular crowdfunding websites such as Fundable and Indiegogo are great platforms to fund small and large business respectively and quickly.
Friends and Family
If you do not wish to reach for your credit card just yet due to the lack of savings to help inject funds into your growing business, you may wish to consider inviting friends and family to invest in your business idea. It’s incredibly important that you make individuals aware that their money may not be returned (in the event something goes wrong). But in most cases family and friends will want to help and invest in you, not particularly your business. If everything is successful you, it’s always nice to reward those who helped you in the beginning when you needed it most.