Can anyone clarify the mystery of creative business financing? Surprisingly enough, there is a myriad of misinformation -- and just plain bad advice swarming this topic. If you're at the point of utter frustration in your search for straight talk about truly creative sources of business start up funding, then read on.
Join me in weeding out "the crap" (pardon the expression) versus the truly creative business financing solutions, by exploring what's hot and what's not in business start up funding. Let's start out by looking at what's not.
Borrowing from Family & Friends
This is usually not a very good idea. It's one thing to risk your own assets, but what happens if your business doesn't do as well as expected?
Credit Card Financing
Using credit cards as a source of start up funding is a very bad move. Not only is the interest rate unfavorable, but so are the repayment terms. Read the fine print of your card holder agreement and you'll see exactly what I mean.
Merchant Account Financing
This is like a loan, in that you are given a sum of money up front. However, there are no loan repayments. The lender takes a chunk of each and every one of your credit card transactions as repayment. Please, please, please - this is a very bad idea!
Peer-to-Peer Lending Groups
This is a loan from a non-traditional source - but nonetheless a loan. The major players are Prosper, Loanio and Zopa.
Before We Continue, Let's Make a Quick Stop in Oz...
Did you know that creative doesn't have to mean difficult? Challenging circumstances are often conquered with very simple -- dare I say, childlike solutions.
Remember Dorothy and Toto? Dorothy just wanted to get home to Aunty Em. What she didn't realize (until it was pointed out) was that she had the means to get back to Kansas the whole entire time. She just needed to understand how to effectively manage what she already had. Along comes Glenda her personal coach (a/k/a The Good Witch).
Glenda provides Dorothy with the training she needed to utilize the resources already at her disposal (exhibit A: the ruby red slippers). The end result? Dorothy is empowered to use what she already had, to get to where she really wanted to be. So what is the moral of this story? Are you trusting in "so called" Wizards?
Learn proven, creative financing strategies to fund your start up by exploring the benefits of bootstrapping.
Trade the value of your products or services for the products and services of other business professionals. I am well acquainted with this form of creative business financing, as a few of my customers have offered me services in lieu of payment. Check out AmericanBarter.com and BizXchange.com if you'd like more information.
Leasing business equipment is a creative means of unlocking needed cash flow. This form of business start up funding is especially helpful if your business requires expensive machinery or equipment.
Find complimentary businesses to partner with. This is an excellent form of promoting your business for free.
This involves a complete system for creatively financing your business, without loan financing or the misuse of credit. All of the strategies we've just explored are some of the many methods of bootstrapping. For the best possible results with this form of funding, you need to invest in a proven, start up business survival guide.
Start Your Business TODAY!
As a Start Up Business Consultant, I talk with people everyday who just didn't think that they had enough money to start a business.
Even if you have little money, poor credit or don't own a home, you can find creative business financing solutions. I encourage you to get the help you need to find business start up funding -- and start your business TODAY!
Begin by claiming your complimentary copy of the "The Bootstrapper's Start-Up Business Planner" by visiting my website.
©2009 Kimberly Kelly - All Rights Reserved Worldwide.
Permission to reprint this article is granted strictly on the condition that it be reprinted in its entirety, with all live links and author bio in tact.