If you want to start your own company, you might be concerned about how you’ll pay for it. Unfortunately, no one is waiting for the perfect moment to give you funds, even if your idea is great.
The good news is that you have options for funding a new company. There are often more options than if you were purchasing a home or car, so do your research before choosing one.
Research student loan deferment
Many college graduates have a nearly crippling level of debt from student loans. If that applies to you, you might feel turned off by the idea of investing in a startup as well.
And if you have a consistent source of income, you may dislike the idea of switching your career at some point for a startup. Your debt doesn’t have to stop you from living your dream. Consider researching student loan deferment to see if you qualify.
Deferments allow you to avoid making payments for a certain amount of time. With certain types of deferments, your loan’s interest won’t accrue. You can then put the money that you would have paid toward the loan toward your company instead.
Small business grants
Some organisations offer small business grants for companies that meet specific criteria. For example, grants might go to minority, veteran, or women-run companies.
Consider contacting the local Small Business Administration chapter to find out whether you are eligible to apply for grant money. Just make sure that this won’t have to be paid back later. Other times, funds can come with strings attached, so ensure you are aware of them. You should know what you might have to do later before you decide whether to accept the grant. That way, you won’t have an unpleasant surprise later.
Don’t quit your job
No one likes to hear this suggestion, but it is one of the most critical. If your current job meets your needs and allows you to put some money aside, keep that job while starting your business.
It takes a while to get a business off the ground, and the first years are among some of the most difficult. Keep your job so you can continue to pay the bills during this time. While you may not like this suggestion, keeping your current job prevents you from having to make as many compromises during the building phase. You can stay true to the original vision for the business. Plus, you will not feel the need to succumb to pressure financially.
If you keep your current job, you might also get experience that will help you keep your startup going later. Of course, if you only run the startup on the side, you might miss out on opportunities. Plus, you will not have as much free time, and there might not be enough hours in the day to get your company off the ground. However, if you are looking for an option that offers financial security, this might be for you.