5 Ways to Start a Business without a Loan
A while back, business mogul Mark Cuban said that only morons start a business on loan. The remark rubbed some people the wrong way because a lot of successful companies began on loans. A bank business loan, however, is not available for everyone. Does that mean your idea won’t come to fruition? These few tricks can help you start a business without a loan.
- Keep another job
Most people are quick to quit their jobs when they start a business. But don’t leave your job just yet. Because of the security it offers, you can get your savings and use it as a foundation for your business. Your job will take care of your bills as you wait for your business to breakeven and mature. The best companies started small and grew to fortune 500 after years of hard work and sacrifice. When you have another job, you will be able to put back any profit the business brings back into it and increase the capital. Working two jobs won’t be easy, but the sacrifice will be worth it in the end.
- Go the partnership way
Partnerships helps you spread your wings. The advantage of a partnership is that the partners can work on different areas of the company to grow it. If you are starting a restaurant, for example, your partner can bring in the money and the connections while you bring the expertise and hard work. Always get the best insurance policy for your restaurant business with Lucas Cole Insurance Agency, to protect your business from disasters and loss. Protecting your business from any eventuality will safeguard your initial investment and also help with continuity.
- Use personal connections
Many companies started because family and friends believed in them. To use this model, you have to come up with a clear business plan and believe in yourself. You can professionally approach them with figures, passion, and projections to lay down your vision. The aim is to sell your idea to somebody else just the same way you would a bank so they can cough up some money. Alternatively, you can go to an angel investor from professional networks.
- Use crowdfunding websites
Crowdfunding is a fantastic way to raise funds from different people online. You have to market the idea so well that it gains interest from followers. Sites like Kickstarter and GoFundMe have helped many startups to kick start through donations from well-wishers.
Perhaps the most genius way to run a business without a loan is to sell your products and services on presale. The clients will pay you a certain amount before you deliver and then complete the payment after delivery. You will use their deposit to source or make the product and distribute it without spending your own money.
Using a loan to start a business is putting your business in a hostage situation from the word go. You have to pay the loan every month whether the business is doing well or not. These alternative methods are much safer, and they will not put your entire life in jeopardy.