Personal Funding
Alan Williams 
The idea of personal funding is self-explanatory and implies that you, as the business owner, kick start the business with the funds that come from your savings, personal loans, assets, and credit cards.
The main advantage of personal funding is that it allows you to retain equity in the business!
And so, the question here is - How does one utilize personal funding?
Let us give you some possible answers to this question!
Savings & Assets
The first thing most business owners resort to is their personal savings and assets.
This is just like putting your money into a piggy bank and waiting for it to yield later in the future when your business becomes a success.
To achieve this, the process isn’t a one-time off thing, and it requires discipline and consistency.
Only the disciplined can save and watch their assets grow into wealth without squandering it on irrelevant things or liabilities.
From the very day, you decide to start a small business, you should start saving aggressively to meet the capital you need.
Create a side hustle with your job to increase your income and cut your cost to increase your savings.
When you do these for a couple of months, then you can invest all or part of the money to get a huge return on investment.
A get-rich-quick scheme is not an investment; stay clear of it — it will only rob you of your money and assets.
Assets are another great investment you can buy to increase your wealth - think of real estate, gold, stock, etc., always ensure to follow up with your assets!
After some years, when you know you’re ready to start your business, you can sell a part of your investments and assets to fund your business.
Get A Personal Loan!
Another great way to self-fund your business is to get a personal loan!
Not many companies have the dream of becoming a big business, so investing and buying assets might take too long for them to generate cash.
You might not think you can get a loan to start your own business, but the reality is that there are plenty of options out there for financing.
The key is knowing where to look and what type of loan makes sense for you!
And hey, if you are unsure how to do that, we’re here to help, just reach out to us at _________
Home Equity Loans
The difference between your home’s worth and the mortgage you owe is your home equity.
For instance, Mr. A’s home worth is $300,000, and he owes $150,000, Mr. A’s home equity is $150,000, which is the difference between $300,000 and $150,000.
It will always be to your advantage if you find a good home to buy and pay more than the required down payment, renovate it to be worth more than the initial price, and use your home equity loan whenever there is a need for it. (tapping into serious real estate here!)
Lastly, Crowdfunding!
The least possible way to self-fund your business is using crowdfunding and can only be possible if you’re a social person or have friends who are celebrities.
Having a huge fan base or supporter goes a long way in helping you secure funds online, all by yourself, without paying mad interest rates!
Preselling is another method of utilizing crowdfunding efficiently - you sell and receive payment before the customer collects their goods.
This is done not just to fund your business but also to get market validation that the idea is good.
Categories: : business, e-commerce, finance