Beyond Your Credit Score: Building a Bright Future For Your Business
As a new business owner, there are many questions you will be faced with. One question that will come up, again and again, will concern the funds of your business. While businesses that are just beginning may not have turned a profit or have their own credit score yet, it is important to prepare yourself and your company for what is to come and ensure you begin taking the steps necessary to set your business up for success financially. Read on to learn how to build a bright future for your business beyond your credit score.
Find alternate sources for funding.
When in the beginning stages of a business, it may be difficult to secure the funds necessary to get your business up and running. There may be numerous reasons for having difficulty finding an investor or a loan from a bank. Whether that reason is due to a personal low credit score, or other financial distress, Aries Advance is here to help. We provide funding opportunities for businesses of all sizes and even those who don’t have the perfect credit score. Start an application today with our small business experts and get the funding your business needs to thrive.
Reduce your company’s budget.
During the beginning stages of a business, it may not be possible to incorporate all the bells and whistles that you have been envisioning. It may do your organization some good to take a step back and rework what the immediate needs of your business are. Those needs may not require office space with numerous conference rooms and many amenities. In an attempt to reduce your company’s budget, renting out ready to use office space may be a reasonable alternative. Additionally, think about starting your business online. Your budget will be reduced significantly and the funds could be reallocated to other areas without the stress of physical office space. Another option would be to outsource work, depending on your company’s scope of work. As a business owner, you may also consider limiting the number of employees. Explore the option of freelancers, part-time, or remote employees to complete projects as needed.
Seek out a business partner.
This option is more about personal preference. A like-minded business partner can be beneficial to a growing business. With the addition of a co-founder or partner, that person may be able to take care of some of the business aspects that you don’t have time to get to. For example, accounting concerns, promotions, and advertising are areas a partner may be happy to consult on. They can focus on their expertise, while you focus on new business prospects.
Think about crowdfunding or equity.
While asking close friends or family for money may not be ideal for numerous reasons, online funding may be a better solution. There are many websites that offer a plethora of options for getting funds from a pool of people. Crowdfunding will allow you to boost your business funds from a host of people rather than a single source. These websites also allow you to offer returns to people who donate money to your business, as a token of appreciation and good faith that their investment will not be wasted. When the decision is made to use of these crowdfunding websites keep in mind that the website will expect a percentage of the profits in return as equity or a reward of some kind.
Give yourself and business the best chance possible at financial success. At Aries Advance, we hope to see your business flourish and our team of small business experts are here to support you every step of the way. Keep these tips in mind as you begin your entrepreneurial journey.