Last Updated on Feb 28, 2020 by James W
Financing a startup is sometimes harder than coming up with an entrepreneurship idea, situation that oftentimes push people to find the wrong solutions. In fact, you might already be thinking of financing your startup and cannot figure out how to get the money needed for your business project. There are many ways to fund a project, but the following are some of the most unsuccessful ways to finance a startup.
The Fastest Way To Get Your Startup into Motion
Many people spend too much time outlining a business plan and “fine tuning” details, but all that is left in writing and therefore when everything is ready to go live they have to find a financing source quickly. Payday loans are probably the fastest solution that you can find, if this is your actual situation. However, a startup that is based on a payday loan hardly will help your business succeed because payday loans are short term loans with the highest interest rate, turning quickly into a financial burden that may lead you to an equally quick increasing debt.
Getting Love Money Is Not Good Either
Despite there are many successful family-owned businesses, your startup may fail if you finance your business by borrowing money from your family and friends. It is valid plan a business with your family from the beginning and let their money flow in. However, when the business was planned without thinking of having them participating, there may be problems in the future whether getting them trying to change your business goals, or trying to get their money repaid under conditions that could be a bigger disaster for you than borrowing money from payday loans.
Seeking Help In the Wrong Places
Some people think of financing a startup by announcing their need of money to get business partners involved. While it can be a good solution when it is done after careful planning to reach potential investors. Running a generic ad that only yells aloud that you need money may attract people who approaches to steal your business idea, or try to take advantage over your business as they may condition to fuel your business with money in exchange of particular demands that are not part of your business goals.
Startup Without Money
While it is possible to get your business going live with very little money or none, the lack of a pre-defined startup budget and a stash of money to go ahead are even more risky than the payday loans we have mentioned above. The reason is simply to understand. You will be competing with dozens, thousands and sometimes millions of other businesses that advertise to attract prospective clientele. If you do not have at least the money for a marketing campaign, or a plan to go with free advertising during your startup stage, your business can simply sink in no time.
Do Not Expect Miraculous Solutions
Finally, avoid sitting down and waiting that something happens by itself to get financing for your startup. Money does not fall from the sky, nor from anywhere else if you do not try to find it on your own.
This is a Guest Post
