Alex, starting a business can be scary if you’ve never done it before. I understand that as I’ve been there. Don’t let it stop you. There are many hurdles and challenges that will present themselves to you. Just keep pushing forward and jumping over them.
In terms of getting funding, there are many ways that I have used in the past and I’ll go over some here. First off is using your savings. In most cases, a savings account may only be paying you 1% on your money. There are no guarantees in business, however, you need to ask yourself if investing your savings in your business can yield you more than that 1% return you are receiving in the bank.
You should always have some skin in the game and use at least some of your money in any venture. If you went to a bank or raised money from investors, they’ll usually require it.
If you need more than is in your savings, you can consider using a self-directed IRA or a self-directed 401k. We can refer you to some trusted providers to help you get set up to invest your retirement savings in your business, which by the way can grow tax-free until you retire if you structure it right.
You can also look to friends and family for loans or equity participation in your business where they’ll put up the money and you put up the sweat equity for running the business. Just make sure to have everyone knowing what their responsibilities are up front so there is no misunderstandings or hard feelings later on.
Finally, you can use traditional bank financing or even fund a business startup on your credit cards if you have ample limits. Oftentimes, banks do not want to finance new businesses so this can be a tough one.
At Happy Tax, we have in-house financing programs as well for qualified candidates and we have some of the lowest startup costs of any franchise in any industry. Whichever way you decide to go to get your businesses started, just make sure that you work hard and stay focused and you will be able to reach those dreams of entrepreneurship one day soon. I am so thankful for being an entrepreneur and the freedoms it gives me. Alex, I look forward to helping you become one too.
Have a wonderful and productive rest of the week and take care.
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