Funding Your Small Business – Smart Tips for Mompreneurs
A woman who can manage a house full of toddlers and/or teenagers can manage any business with triumph. That is why ‘mompreneurship’ is such a hot concept right now. Stay-at-home moms starting a small business right from their homes have the potential to build a successful business, make good money and become their own boss. Aside from a good idea, plenty of determination and a positive approach, the one thing vital to starting a small business is funding.
If your business idea is fairly small right now, you can quite easily raise enough funding on your own to get the business off the ground. Reinforcements can be brought in later once you begin making some profit, but during the early stages, some clever budgeting, small personal loans and help from friends and family can give you adequate funding to dive into the mompreneurship splash-pool.
Here are five tips that will help you raise enough capital to fund your own small business and get your dream project off the ground:
Bootstrap – Build Up Adequate Savings to Fund Yourself
First things first, you need to save up some money to give yourself a strong foothold. This does not have to be a dreary penny-pinching process of saving quarters in a tin can. If you just begin with some moderate lifestyle adjustments and cut out expenses that you’ve been making without much though, you will save up enough over a period of time. Here are a few things you can do to save money without turning into a hermit:
That’s right, it’s that simple. Eating out is one of the biggest expenses in the American household. Those who eat out regularly, up to three or four times a week stand to give away nearly half of their monthly earnings to restaurants that are usually far overpriced. If you instead begin to cook a square meal right at home, not only can you save a lot of money but also get so much healthier. Do feel free to indulge in restaurant food every once in a while though.
Plan Your Grocery Shopping Around Sales
Most grocers have a weekly sale day, sometime in the middle of the week. You can save up to 40% on your grocery bill if you just control impulse shopping and plan your trip to the grocery store in sync with sales. Also begin to make good use of the coupons lying around the house. It’s also a good idea to make a list of groceries you need before you leave home, and stick to it. Buying on a whim while in the store can add up super fast. This is your hard-earned money and there is nothing de-glam about trying to save every penny of it.
There are plenty of other ways to save money. Once you have a decent sum in the bank, you are ready to take things to the next level.
Find an Investor
While there is an abundance of funding sources like angel investors, corporate companies and venture capital funding today, if you wish to start small, you can always reach out to family and friends willing to pitch in. You’ll be pleasantly surprised by how excited folks can get at the idea of starting a business or helping start one.
You must however be sure to present a good overview of your business plan and monetary projections to the investor to ensure complete transparency.
Keep Expenses Low at First
When you are starting out with a small business, you don’t have to go all out with office supplies, high-end furniture or even an office space. Depending on the nature of business, you can start in a room within your house and source other supplies from what you have or what you can buy from family, friends and neighbors.
Prioritize your expenses and meet the important ones first. You will need a professional website, essential materials, training, certification, and legal expenses that will need to be taken care of first.
Depending on the nature of your business, you can lease other equipment, buy used items or hunt for bargains. Compare prices online to buy the best deals and save money. In short, you need to prioritize your spending and make do with the best you can find at the lowest prices.
Get a Small Loan
At first it doesn’t have to be a large undertaking with EMI’s spanning several years. You can secure a small loan just enough to get the engines fired up. Check with the Small Business Administration (SBA) about the loans you are eligible for. While there are plenty of loans available, there are fewer grants that are only for specific cause-driven businesses such as those related to agriculture, solar power, health care, childcare and others. If you are eligible for any of these, do be sure to seek a grant.
Start a Crowdfunding Campaign
Thanks to the world wide web, you can now look outside your closed group of family and friends, and seek funds from willing lenders all across the world. There are a number of web-based Crowdfunding platforms where people from all over can invest in your business. Investments can be in the form of a loan, equity or profit-sharing and reward based. If you choose to go this route though, be sure to do plenty of research and choose the best Crowdfunding platform as there are just so many.
If you have decided to be a mompreneur, congratulations to you. You have already taken the first step to financial freedom and being your own boss. Thanks to the widespread use of internet and its vast possibilities, launching a business today is easier than ever. While nothing can replace your resolve, grit and hard work, raising capital to start a business is no longer an impossible quest involving scamming bank loans or bossy investors. With the aforementioned tips, you can raise enough money to start a small business without having to mortgage your home. What other ideas do you have? Do share with us.
(Featured Image Source: Pexels)