Creative ways of funding your business

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With the capping of interest rates on the loans offered by the banks, the lending figures from the banks are in free fall. Most of the entrepreneurs are looking for various options to start new businesses and expand the existing business establishments. Secondly, when applying for loans from the bank some form of collateral is usually required depending on the amount of money that you are borrowing. This disqualifies a lot of people especially the small-scale business people since they do not have the financial muscles to guarantee some types of loans. Let us look at some of the creative ways of funding your business;

Creative ways of funding your business

Start-up loan

If you want to establish a new business or you have been in business for the less than two years, you might be eligible for a type of loan that is referred to as the start-up loan. This loan is government backed and is intended to encourage as many people as possible to establish start-ups. This loan is only granted to individuals who exhibit that the cash they wish to borrow is designed for business. It is usually unsecured and repayable at a fixed interest of six percent.

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Bank overdrafts

The bank overdraft is ideal for the businesses that have fluctuating income. If you operate such a business, then the bank overdraft will provide you with a flexible and quick cash flow. The best approach to this creative way of funding your business is simple; secure the overdrafts during the months that you have less income and payback in the months that your business peaks.

Most of the banking institutions will only apply the interest on the overdrawn amount. They have lots of friendly packages that are meant to encourage the businesses to take up these offers.

Cash advances

fghgfhgfhfghfghertSecuring the cash advance is another creative way of funding your business. Various companies allow firms to receive cash before their invoices and debts have been paid. The financier is usually required to buy a fixed percentage of the future debit or credit card transactions at a given discount. He is then needed to advance the money into the bank account of the business; this typically takes ten working days. The repayments are then scheduled to be repaid as by the pre-agreed percentage.

Microfinancing

Microfinancing is a great alternative to fund your business if you do not qualify for loans from the mainstream banking institutions. The microfinancing institutions offer insurance, savings, and loans to the small business owners and poor entrepreneurs who do not have security to secure loans. This a great avenue of financing your business since the interest rate charged is not as high as those that are charged by the banks. The payment plan is also flexible.

Asset finance

Asset finance is another creative way of funding your business. The asset finance-based loans have a similar model as the mortgage. If you need money to expand your business, you will borrow against an asset that you have. If you are not able to finance the loan, the asset will be repossessed. Some of the assets that can be used as security in this particular case include equipment. Inventory, accounts receivable, and property.

Do you want to open a skateboard shop?

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Opening a skateboard shop is easy if you are a hard worker. You just need to know a few things about handling business. A lot of skateboarders thinks how awesome it would be to own a skateboard shop with all the latest gear, checking them out and selling to the customers.

We will go in detail and guide you to the things that you need to know when opening a skateboard shop. All the entrepreneur out there makes the mistake of taking the business too lightly or go with the flow. You shouldn’t do that in any business.

Business Plan

You should always have a business plan. You need to know what’s your budget, how much inventory you need, how much is shop rent, what’s the budget for marketing, etc. Having a business plan helps you achieve your mission and make decisions comparing the revenue or loss.

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Competitors Analysis

You should always do competitor analysis when you start a shop/business. You need to know what they are offering and how many skate shops are already there in your area. It will help you deliver more to your customers, and they will also love coming back to your shop for more.

Follow The Trend

You need to follow the trend going on in the skateboard industry. It will help you provide information to your customers when they ask. You ought to learn more about the skateboard so you can help the customers buying them and choosing wisely. With this, you should take the time in reviewing the different brands. You can check out their Facebook page.

Friendly

This is one of the most important in any business. Being helpful to your clients and answering their questions patiently will earn you more customers. One customer can give their reference and hundreds more will come from one so always be friendly and polite to your customers.

Advertising

Before the opening day, you should do proper advertising campaigns to get the spotlight. Make sure you advertise in the right places. Open a facebook page, a website where you write about guidelines and reviews on skateboards. Use facebook ad campaign to target the local users in the area. Do some giveaways to engage them to your shop. Prizes for everyone which might cut your profit a bit but it’s for the future. Organize a few events one other month.

Go Online

Make sure you have a website where people can order and compare all the products available in your shop. Also provide free shipping if possible.

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Branding

The branding is an important aspect of any shop. Make sure you got a nice clean logo and a catchy name for your store.

Now let’s get to the legal part of opening a skateboard shop.

  • You will need a business license.
  • Company card.
  • Rent a small shop in the best possible and crowded area.
  • Get an inventory.
  • Decorate your shop inspired by skateboards.