Best Practice: Your best source of money to start or grow a business is your own money. Keep your overhead low and control of the business.
Today’s Article: Access to Capital for Branding: Personal Savings
The best source of money to start or grow your business is money you already have in personal savings, investments or money you can access by selling things you do not need or use. Also, look to lower expenses to free up cash for your business. Depending on the amount of capital needed, fund as much as you can yourself, before looking at outside lenders.
Advantages of Personal Savings
1. 100% control and ownership of the business
2. Money available for start-up and existing businesses
3. Investing in your own idea – greater commitment to success
4. Source of money is interest free
5. You control any personal structured loan payback period
6. Owner does not need to have good credit and or run a credit report
7. Potential future funding
Disadvantages of Personal Savings
1. Money that the owner stands to lose – start-ups have more risk
2. Recommend when possible do not take a second mortgage
3. Recommend when possible do not take money from retirement programs
4. Recommend when possible do not take credit card advances – can be very expensive
5. Recommend when possible do not charge large amounts on your credit card
6. Due to business risk, start more slowly and test out ideas to validate there is a real need
Action Step: Review your financial assets to see how much money is available for your business.
Your brand is your handle. The handle that opens the door to your business, its products and services. Brand Door is always open to you. “Easy access to expert branding”