So, you’re a young entrepreneur and about to start a company. You know that most new businesses struggle in their first year. That’s why you need to be completely prepared before you start your new venture. Let’s look at some essential things that every entrepreneur needs before they start a business:
You Will Need More Funding Than You Have
Most businesses fail in their first year because they don’t have adequate funding. The first year can be tough. When they can’t pay salaries, rent, bills, and other operational costs, they are forced to shut down, which is a pity because with adequate funding, many young businesses can go on to be successful. Here are some ideas for you to secure your funding:
- Savings: Make sure that you have enough savings. Not only can you use your savings in emergencies, but you’ll need your savings to take care of your personal expenses until you can draw an income. Remember, most businesses aren’t profitable in their first year, so you should have savings for the long haul.
- Traditional lenders: The best way to secure long-term funding is to approach a traditional lender like a big bank. A traditional lender will offer you adequate funding. However, such lenders take months to approve funds and are very demanding. For example, your big bank may demand an excellent credit rating, strong financial forecast, assets, and more.
- Online Lenders: Unconventional lenders are less demanding and may even offer a loan based on your personal credit score. However, many offer predator terms, so please be careful! If you find a reputable one, you can use it to secure a bridge loan in case your business needs emergency funding before financing kicks in.
- Angel Investors: Angel investors will provide you with the funds you need if they believe in your company. However, angel investors can be demanding and may want equity.
- Family & Friends:Your family and friends may be happy to invest in your business for an exciting opportunity. If you’re accepting funding from loved ones, please keep everything professional and on record. Make sure they understand the risks of investing in a business.
- Crowdfunding: If you have a particularly exciting idea, then take it online on a crowdfunding platform like Kickstarter to attract funding from the Internet.
- Venture Capitalist: Companies with a lot of growth often attract the attention of venture capitalist firms. Research venture capitalists to see how you can connect with one in your city.
It’s important for your company to have branding to improve your market reach and sell products and services more effectively. Not only does branding create loyalty amongst customers, but it can also boost your company’s morale.
For a cost-effective way to start your branding, consider buying shirts, caps, hoodies, bags, and other items from a retailer like Prints Canada today. This platform offers great deals and live support. What’s more, it uses cutting-edge technology to print your brand on products.
When it comes to starting a new business, nothing is more important than funding and branding. Get both in order to put your company on the road to success.