How to Get Money to Start Your Business – Suze Orman
Here’s financial and life inspiration from Suze Orman:
“In all realms of life it takes courage to stretch your limits, express your power, and fulfill your potential. It’s no different in the financial realm.”
You need courage to be an entrepreneur – and you need to believe in yourself! For more info on starting your own business, click Small Business Start-Up Kit. And read on for several ways to transition into self-employment as a business woman…
How to Get Money to Start Your Business – Suze Orman
Be open to creative business and financial possibilities! In How Hobbies Become Money Making Careers, I describe ten hobbyists who turned their joys (and opportunities) into their businesses. They became female entrepreneurs almost by accident, because they were open-minded – and they love it. Not all of them share how they found the money to start their businesses, but if you want me to contact them, just let me know in the comments section below. I’d be happy to write an article called “Money Tips From Female Entrepreneurs.”
Work part-time, be self-employed part-time. When I first started freelance writing, I worked part-time in an office. I soon realized that the more time and energy I put into writing, the more it paid off – so I decided to take the leap into full-time self-employment as a home-based writer. This is a great way to earn money to start your own business – working part-time – because it’s practically risk-free.
Invest your savings in your business. If you have a couple thousand (or a few thousand!) dollars saved up, then investing your own money in your business makes sense. If you’re a saver, it doesn’t take long to build (or rebuild) capital. If you’re a spender, read Money Tips for Women in Their 20s, 30s, and 40s. If you own your home, you could consider remortgaging it…or selling it altogether.
Apply for a small business loan. Before you apply for a loan, make sure you have a business profile, business plan, personal and business financial statements, and proof of collateral. If you’re applying for a loan to start your own business, you’ll also need to know your credit rating. Plus, you should have some of your own equity invested in your business (eg, money, property, equipment, etc.). To learn about banking relationships, read Tips for Small Business Banking.
Ask your friends or family to invest in your business. You can alleviate the awkwardness of asking friends or family by following certain standards for lending money to friends or family members. If you’re asking friends or family members for capital for your startup, then you need to be as professional, businesslike, and organized as you would if you were applying for a small business loan. And, make sure everything is in writing.
Use your credit card or personal line of credit. To me, this is a risky way to get money to start your business, but…entrepreneurs are known to take risks! Think this through very carefully before you start using your credit card to finance your small business. Most credit cards charge high interest rates, and you have to pay your bill whether your business is successful or not.
Play the stock market? This is another risky way to get money to start your business! If you’re considering investing money to make money, make sure you’re prepared to lose it all. Some investors make good money playing the market – though the economy can make or break your investment. Short-term high-risk investments aren’t necessarily the best way to finance your venture into female entrepreneurship…but it is something to think about.
No matter which combination of methods you use to become self-employed, take this financial advice from Suze Orman:
“It’s better to do nothing with your money than something you don’t understand.”
Don’t invest your money into anything you find confusing, unsettling, or risky. Make sure you research all your options thoroughly — whether you’re getting a bank loan or using your own savings to start your business. You might also consider investing in a business financial advisor.
For more info on successful self-employed business women, read The Key to Success for Female Entrepreneurs – Coco Chanel. And if you have any questions or thoughts on getting money to start your own business, please comment below…
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Hi Sharon,
You took the words right out of my mouth! It’s rare for new entrepreneurs to actually make money and pay themselves; in fact, a female entrepreneur emailed me yesterday and said that it’s a long, tough slog but she’s determined to make her business work.
I don’t know how entrepreneurs can afford to live during the first few years of their business, but many do!
Thanks for your comment and warning.
Laurie
.-= Laurie PK´s last blog post..Ways to Stop Obsessing About Your Ex-Girlfriend or Ex-Boyfriend =-.
One thing female entrepreneurs have to remember is that they may not get paid for years. I read a book about starting your own business, and the business women didn’t pay themselves for at least two years. All the money went back into the business and to pay off the bank loan.
So just remember that if you’re getting a loan or using all your savings to start your business, you might not be earning a paycheck for a long time!