Many people think about starting a business, but they are afraid that they will not have enough capital to do it correctly. So they decide not to do it. Taking no action is one of the worst things you can do. I always say that doing something; anything is better than nothing. Even if you have to start with $100 (some businesses have commenced on that amount), you can start slowly and grow without causing undue financial strain on yourself.
If you want to start a business, or you’ve already started one but need to move to the next step, you’ll like this post. We’ll talk about how much money it takes to get going with a business idea and offer some solutions if you need some fast capital.
Newton’s Law of Business
Isaac Newton said in one of his first law of motion, (paraphrasing) “An object in motion will remain in motion unless acted upon by an outside force.” An application to business could be said like this: “As long as you are moving forward, you are not standing still.” This applies to business ventures more than anything.
In other words, if you have a great idea that you think would bring people something of value and you want to share it with the world, you can start with a surprisingly small amount of money and still be able to launch your dream. You don’t want money to be the obstacle that interferes with the impetus you have to launch your idea.
Tom Smiley, author of several books and CDs on the topic of Business Startups, he emphasizes that you should never let anything stand int he way of launching your dream. He started with just a few hundred dollars and now runs one of the most successful work-at-home media companies in the world, Simplymedia.com. He offers some excellent startup tips, by the way, on his site.
Barbara Corcoran, one of the co-stars of ABC’s wildly popular “Shark Tank” show, started her New York real estate business with only $1,000. It is now worth several million dollars, and she also owns equity in several of her other Shark Tank businesses.
We dug into some of the research for this post, and according to Census data, more than 40% of all small businesses started for under $5,000. Additionally, around 64% of all entrepreneurs started with less than $10,000. (Quickbooks) This should be encouraging for the startup entrepreneur or would-be business owner who has let the idea of not having enough capital hold them back in the past.
That being said, the more working capital you can round up before starting your business, the better off you will be. To help with this, we have assembled a few sites that you may want to look into, all who offer valid working capital for small businesses needing a little money to boost their startup.
Some Great Ways to Secure Fast Capital
The following sites offer businesses a way to secure honest, working capital that allows you to start or grow your business from the ground up without having to dig into your savings or regular income to do it.
1. Paypal Working Capital– Paypal Working Capital is a great opportunity for small businesses whether you are just now starting your business or trying to grow your business to higher levels. They offer easy payback terms, and they base the amount they will loan you on a percentage of your last 12 months of sales. You do have to have made regular business transactions through your Paypal business account to qualify for this opportunity. All this takes is a working business Paypal account that you take payments through on a regular basis.
Payments are automatically taken off the top of any of your payments that come through your Paypal business account so that you don’t miss them. These funds are used to apply to your balance that you owe Paypal Working Capital and you have up to 18 months to pay off your loan. Read the terms at the Paypal Working Capital site to learn more. This is an excellent way to obtain needed funds to launch or grow your business if you don’t mind getting funds in advance that you’ll make later and then pay back a portion of those earnings to pay the debt.
2. Kabbage– Kabbage is similar to Paypal Working Capital in that it also takes a percentage of your future earnings to pay back the loan. However, they require two sources of proof that you are making money online to qualify. You may find it to be a bit harder to be eligible for than Paypal Working Capital. Look at their site to learn more.
3. Fundera– Fundera.com also offers a way to secure capital and needed funds that you can use to grow or start a business. But they operate more like a portal site that allows you to put in your information and then get multiple results from various sources that offer you options in funding your business. This allows you to pick and choose from a variety of funding sources that will compete for your business so that you will get the best rates.
Don’t Borrow Too Much!
These are three options that allow you to secure much-needed capital to grow your startup to the next level. You don’t need a huge amount of money to start a business so don’t fall for some lending sites that offer $100,000 or more to begin. In fact, taking out that much money at the onset of your business would not be a wise move. You always need to stay ahead of your debts as much as possible, especially when you are starting out.
Part of the value of your business as you grow is that you keep it in the positive column. This means that you need to keep your debt as low as possible while you create new revenue for your business. The amount of monetary value that your company is worth is a part of the valuation that you have for your growing business. So secure the funding you need to operate and slowly expand but do not overextend yourself too soon.
Many businesses have gone out of business in the first year because they got into too much debt too fast or stocked too much inventory. So grow slowly to secure your future and take your time. But seize every opportunity possible to move forward.
Wantrepreneur or Entrepreneur: Which are you?
If you have a splendid idea for the business, product, or a service, don’t let money hold you back. It’s within your power to create, run, maintain, and grow a business. Just look at your resources and take it a step at a time. So, don’t forget that you don’t have to be a “wantrepreneurs,” as Mark Cuban says about people who want to start their own business but who don’t have the talent, skills, or resources to do so. Don’t settle for that! Be an entrepreneur.