In continuation from Friday’s post.
Bootstrapping….Using whatever resources you have on hand to help you get your business to the next level is considered bootstrapping. Most new company’s start up costs come from personal savings and home equity loans. Some businesses have used credit cards to aid in paying for start up costs. It is estimated that one-half of all business begin by using credit cards. Owners must be very careful when using cards. The finance costs could be crippling to any business, especially a new one.
One well known, successful company that financed most of their initial costs was Google. If you use your credit cards, be sure to make your credit history a top priority. Never be late on a payment and pay back as much of the loan as possible, as soon as possible. Looming debt or bad credit ratings will affect you adversely if you apply for a Small Business Loan or other type of loan in the future.
Suppliers and customers….You may be able to convince some suppliers to hold inventory for you until a certain date. You would need to provide them with final date in which all supplies will be paid for in order for them to even consider such an option. Some customers may be willing to fund your products as long as you are willing to customize them for their own businesses.
Check back on Wednesday for the conclusion to this post.
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