Best ways to finance a business
I’m thinking about starting a small business to sell my homemade soaps and bathbombs. I guess I will need to buy what I need to produce and package many of them so I can have a good inventory, and I will also need to develop a logo and a website to sell them.
So I was wondering what was the best way to finance a business like mine? I know there are many options like loans and crowdfunding, but I’m not sure what to try. Any advice would be appreciated!
JessicaParticipantTopics: 5 Replies: 21
I don’t think there is one single best way to finance a business… It all depends on the type of business you want to start, how big you would like it to be, and how much money you will need to get started on the right path.
From what you’re saying about your business project, I think crowdfunding could be a good option for you. You could start a crowdfunding campaign to offer your soaps and bathbombs, and people could preorder them, which will give you a better idea of how many units you would need to have in your inventory.
If I were you, I would definitely consider crowdfunding.
MillieParticipantTopics: 1 Replies: 8
Getting a business loan could be helpful, but you have to be careful with loans because of course, you need to repay them eventually. If you get a business loan to start your business, but then your project fails, paying back your loan could be difficult.
Trying to apply for a small business grant could be a better option, but then if you work hard to submit your application and it is denied, you’re back to square one.
I’ve also heard about factoring, but I’m not too sure how that works. It surely has pros and cons like any other business financing option.
I’ve heard about factoring, and I’m not too sure this is the right thing for me. Maybe crowdfunding could work, but I’m a bit afraid that no one will want to invest in my campaign.
Don’t get me wrong, I know my soaps and bathbombs are great! My friends and my family love them, and I’m sure other people could be interested in buying them as well… I’m just not sure I’d be able to run a successful crowdfunding campaign.
CandiceParticipantTopics: 3 Replies: 22
Homemade bathbombs, my wife loves those! She has already tried to make her own, but it wasn’t a success… more like a mess…
I’ve used Thinking Capital to start my own business, they offer business loans and you have the choice between fixed payment terms and flexible terms, so that can be pretty convenient. I don’t know if it can be right for you but I recommend checking them out.
I think getting a small business loan is the best option. As long as you have a good idea of how much money you’ll need, you can apply for a loan for this amount. It doesn’t hurt to also have some savings that you can use if ever things are a bit more expensive than you expected.
I don’t recommend borrowing money to friends and family! Even if you can show them your business plan and promise them that you will pay them back, you never know how things will go and you don’t want your closest friends and relatives to be angry with you… trust me.
Thanks for the advice everyone. I’ll keep developing my idea and I guess I’ll try to go for a small business loan.
This is the beginning of a new adventure and I hope it will be fun, and also that it will teach me new things!
Hopefully it will! Good luck!
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