Capital is important to run any small business. Small business owners are consistently looking for ways to raise capital and Tim Chaves from the Business Collective, suggests five ways to accomplish this.
- Your own job – Be flexible. If you have a few hours in the day after you work your 9 to 5 make sure you have some time to work on your side projects. Budget your salary and make sure you save funds for your side project as well.
- Friends and Family – Be careful of asking or receiving donations from family and friends. “While I am extremely grateful for the help we received, and while we were able to fully pay it back, it can be highly emotionally draining to worry about something outside your control happening and failing to meet your obligations to a close friend or family member,” said Chavis.
- A service component in your business – Service can make your business profitable right away due to the very little upfront expense required
- Angel investors – Angels have different incentives than other investors since they are investing their own money and some may be willing to “structure their financing as debt as opposed to equity.”
- Bank loans or other debt – TRY NOT TO TAKE ON “SPECULATIVE DEBT” or RISKY DEBT! “That means when you take on debt, it should be clear you’ll have the cash flows necessary to cover future interest and principal payments,” according to Chavis.
-Ray Hayes
//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js
(adsbygoogle = window.adsbygoogle || []).push({});
