Are you thinking about setting up your own company? You might have heard that it’s possible to set up a business with no money in your accounts. This probably sounds fantastic and perhaps, just a little too good to be true.
Well the reality is that while you can set up a business without money in your pocket, you shouldn’t. The likelihood that your business will be successful is going to be close to zero if you do this. Why is that?
Ultimately, you need to remember that when you start a company, you’re going to be facing a lot of competition straight out the gate. It’s vital that you don’t end up in a situation where you are already in a weaker position than is necessary. This is exactly what’s going to happen if you don’t have the right level of funding for your company.
How Much Will You Need?
The first question that you need to ask is how much funding is going to be necessary for your first startup or company. Well, you should think of finding at least five to ten thousand for the first year alone. If you are running a brick and mortar business, then you could require more.
Getting The Funds
There are lots of ways to get the funds you need for a new business. First, you can dip into your savings. Digging into the savings can be the right decision. While a business brings risk, it also has great potential. You could gain more money from this venture compared to a more typical investment.
You can borrow money too. If you don’t have the cash but you do have great credit, get a business loan. Business loans are available from banks. You can even explore monetising a bank guarantee. It’s a great way to get the credit stream you need for your new business.
Alternatively, some startups find success with crowdfunding schemes. It’s an option if you have an idea that will capture the interest and imagination of an audience .
Keeping your business efficient is key. Think about the best ways to reduce your costs and cut them down to size. It’s important you don’t grow your business too fast. If you do this, you will also be growing the risk.
To save, you may want to hire an account. Hiring an accountant might seem like another cost to fit into your budget. However, it does provide big benefits. For instance, it will help you save money on your business taxes. That’s one of the main responsibilities for you, even if you have a small company.
Another way to save would be to keep things green. Don’t forget customers will appreciate this too. They want to buy from businesses that are conscientious about the state of the planet today.
We hope this helps you understand why you shouldn’t start a business with no funds. The good news is that there are plenty of ways to raise the cash. With the right funding, there’s no limits on what your company can achieve.