Starting your own business isn’t easy, especially if you don’t have the funds for it. While your idea may be amazing, getting investors or even a business loan can be difficult in the initial stages. This is when you have to think outside the box and find other ways to finance your startup.
So, what could you possibly do to get kick off this idea?
The solution to your financial problem could be a personal loan. Now you may wonder why you would opt for a personal loan when you can take a business loan.
There are quite a few drawbacks when it comes to a business loan. First, the eligibility. Sometimes, you’re required to be in business for a minimum of one year before applying. It takes a lot of paperwork and weeks of processing to get it approved. And you have to show your annual revenue with other collateral as well.
Choosing a personal loan to start your business means bypassing all of this and getting right to work.
And here’s how to you can put your personal loan to good use!
Choosing a Business Entity.
Before you even start work with your business, you will need to incorporate your business. This will help you with tax payments and future loan applications. Based on the type of business you’re planning to run, you can either incorporate your business or apply for permits and licenses.
The cost of this varies from each country and each region, so it’s best to do your research and keep the necessary funds aside.
Equipping Your Office Space.
Assuming you already have an office space, you will need to equip it with the tools to the complete it. Again, this is based on the industry you’re opening a business in and the number of employees. For instance, computers are essential office equipment, especially in this day and age.
Do your research, find some great deals, and set aside a budget for the equipment you will need.
Stocking Up on Inventory.
This, too, is subjective to the business you’re in. If you’re in the retail or manufacturing industry, it’s crucial to have a deep enough inventory right in the beginning. However, you need to figure out a way to strike that balance of stocking up just enough. If you’re running out of products to sell, you’ll have unhappy customers. If you have too many products to sell, you’re running a loss.
Since you’re starting a new business, it’s recommended to keep your inventory full. No one wants a dissatisfied customer sharing bad reviews about the business.
Paying for the Office Space.
For a business to run successfully and eventually scale up, an office space is a must. The rent of the office space depends on a lot of factors—type of space, the size, and perks and conveniences offered. Till you start seeing profits from your business, it will be good to set aside some money to cover these costs.
Alternatively, you can also opt for co-working spaces to lessen the costs. Or if you have no finances to spare at all, working from a home space is your best bet!
Furnishing the Office Space.
No office is complete without basic furnishing—chairs, desks, cabinets, computers, printers, and computer software. Addition of furniture and essentials to the office space depends on the number of employees and the layout of the office as well.
A tip before shopping for furniture and supplies. Look for deals online or at the stores to save money and cut costs. You can also use a credit card that offers cashback or reward points on your purchases.
Designing and Maintaining Your Website.
Owning a website for your business, however small, is crucial these days. Most customers tend to flock to the internet to look up for a wide range of services or products. If you want them to flock to your business, you need a website.
Your website should ideally have the basics—all your services or products, information about the business, and contact details. While designing your website, ensure it is simple and user friendly. It shouldn’t be a task for your customers to look for information.
There are also an array of content management services that are available online, which are free sometimes. However, if you want a premium website, you have to pay for the plan.
These services are perfect for startups as they are easy to build and require no coding, which means no additional costs.
Marketing Your Business.
It has become increasingly easier to market your business now, because of the social media boom. Unless you want to opt for paid advertisements, you don’t really need to allocate any costs for marketing.
You can create your banners, posters, ads, and any other marketing material in-house and then share them across social media websites like Facebook, LinkedIn, Twitter, Pinterest, and Instagram. Even if you want to market your business on any of these sites, the costs are comparatively lower and reasonable.
However, it’s best to ensure your budget for marketing is less than 10% of your overall budget.
Now that you have a basic idea of what you need for your business and how much it will cost you, you can visit bbazaar.my to compare different personal loans. Choose one that suits your needs and will help kick start your business efficiently.