By Eric Rosenberg –
Business ideas come easy to some, but what happens when you have a good idea but no money to get started? Countless entrepreneurs have run into funding challenges when looking to found and build a new business. Here are ten ideas to get you started when looking to get money for your business.
1. Personal Savings
The first place to look for capital when starting a new business is your own bank account. If you are smart with your personal finances and keep good habits, you should have an emergency fund and retirement savings, but you should avoid tapping into those whenever possible.
Instead, try to draw on your own cash and stretch it as far as possible. “Bootstrapping” is a term commonly used to describe starting a business in such a manner. Succeeding in a bootstrapped business generally requires you to be very thrifty and tight with the budget, but at the end you could come out as the sole owner of a debt free, successful business. That’s the best possible scenario for you as a new business founder.
2. Credit Cards
Tread with caution if you want to tap into your credit cards for your business. Credit cards are an easy way to get fast access to cash for your business, but that cash comes with a big price tag. The current credit card average interest rate is 14.87 percent, according to this household credit card debt survey. That expensive credit card interest adds up very fast when you are starting a new business and can’t pay the balances off right away. (more…)