Oct 23, 2011

Overcome Funding Problems

Basically every business would need capital and capital is often an obstacle when intending to run a business idea. There is a Chinese term that says that there is no gain without capital, thus surely we need capital funding to start a business. Capital money is important but not everything to start a business. The best formula that is always given to overcome funding problems is beginning according to our ability or otherwise adjust the business in accordance with our abilities, if the business has gone the way and already seem to give results, then think to use of the third party to overcome your funding problems and raising your business.

There are several ways to overcome funding problems, such as :
  1. Partnered with relatives or friends, This way is more profitable and secure, because of gains and losses are shared.
  2.  Borrow from relatives, friends, or neighbor.This way is relatively safe, but can cause the relationship to be no good if you have problems in paying debt.
  3. Borrowing from money lenders with very high interest, away from this type of loan is recommended because it can cause your finances to fall apart.
  4. Pawn Shop, through the pawnshop we can borrow money by mortgaging valuable asset as collateral. we can borrow up to 90% of the value of goods.
  5. Bank Loan, for business development, this program could be a preferred solution. if you require substantial funds, the bank is the best solution. although it requires a fairly complicated process to get the funds. most banks only provide capital for businesses that have been running at least 2 years and usually banks ask for collateral
    And all the points above each have advantages and disadvantages of different depending on our need and also our ability to return the funds we borrow on time.  The following is a wise way if we are forced to borrow money to develop our business :
    1. The first step to do is make a budget plan for the development of our business
    2. Borrow money in accordance with our abilities. think how much we can afford to pay each month.
    3. Spend money wisely, spend your loan funds only for the needs of your business development. Do not ever spend it for your personal needs.
    4. Write down all your expenses regularly.
    5. Running business in a consistent and professional ways.
    6. Do the market surveys for the development of your business.
    7. set aside some money for operating expenses, maintenance, debt repayment, savings, etc..
    Hope this overcome funding problems tips can be useful for all of us.

    Oct 29, 2010

    Start A Business With Small Capital

    Start a business with small capital is not an impossible thing to do, but still many people are hesitant or afraid to start a business just because of their small capital. start a business with a small capital does not directly generate profits. It takes time. It would be more stable financially if you or your spouse have a full time job. You do not need to be discouraged to run a small capital business because the most important thing in running a business is the ability / interest and talent combine with the foresight to see the market opportunity.

    There are many small capital business. The following options you can consider to start a business with small capital :
    1. Affiliate Marketing Online, you do not need big capital to run this business by choosing the type of free affiliate. Three things you need to run this small capital business are : computer and Internet connection.
    2. Online business by making a website or free blog (see the detail information here
    3. Marketing company, you sell a product and you get commission. You will be paid when successful sales. So, if you are interested in this small capital business type then you need to master the details of products well, so that people will believe it when bought from you.
    4. Mail order or courier delivery, this include small capital business, because you only need vehicle, gasoline and time to deliver orders.
    5. Sell crafts or homemade foods. Use friends, relatives, neighbor or your business colleagues to market your product.
    6. Selling services like hair cutting, tailoring, consultant and service bureau. 
    Remember, you can start a business with small capital right now. You do not need to have a large amount of money, expensive tools or sophisticated equipment to start a business. Be smart, efficient and work hard, even though we may still have some limitations and obstacles that exist....then success will be yours.