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 :
- Partnered with relatives or friends, This way is more profitable and secure, because of gains and losses are shared.
- 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.
- 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.
- 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.
- 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 :
- The first step to do is make a budget plan for the development of our business
- Borrow money in accordance with our abilities. think how much we can afford to pay each month.
- Spend money wisely, spend your loan funds only for the needs of your business development. Do not ever spend it for your personal needs.
- Write down all your expenses regularly.
- Running business in a consistent and professional ways.
- Do the market surveys for the development of your business.
- set aside some money for operating expenses, maintenance, debt repayment, savings, etc..