How to Start a Business Without a Business Loan

Starting a business is one of the most exciting times in a new business owner’s life, but without financing or a business loan you might feel limited in what you can do. The truth is that you might be. If you can’t secure a business loan for your new start up, you’re not completely dead in the water. There are a lot of things that you can do to still get your business up and running with very little capital. Banks and other lenders are not giving out business loan the way that they used to it’s up to you make your dreams com alive. Here is a short guide on how to start a business without a business loan.

Do you have a passion for something but you just don’t have the financing to open a brick and mortar store? Affiliate marketing is a great way to start a business with extremely little capital. This form of marketing allows you to sell products online without having to deal with shipping, customer inquiries or product faultiness. You can even do it with a free website. If you’re interested in affiliate marketing, research it online for more information on how you can have your business set up in less than a month.

Private investors are another option that you can use when you are trying to start a business but cannot secure a loan. Private investors will give you the capital it takes for getting your business up and running, but you need to be careful about who you allow into your business. Make sure that you have iron clad contracts on how you will repay the investors and what kind of percentage they will take from the profits.

If you can’t get a business loan you might want to start small. Work at your business part time until you can come up with the capital or the financial records to show that your business is going to be profitable. Starting a business is exciting but make sure that you’re not going overboard if you’re going to work on it part time. Take things slow and do it right the first time. Consider getting the essentials over time instead of all at once. A business phone, a new computer and other office supplies can wait until you start to turn a profit.

Using your own savings is risky, but a lot of business would not be here if their owners did not take the risk. Make sure that you have worked out a plan for your savings to be repaid when the business begins to turn a profit. You are always going to need money for a rainy day and retirement.

There are a lot of government grants for small businesses. If you can’t get a business loan you might qualify for a grant. Use the government’s website and search engines to research small business or first time business grants. File all of the paperwork and you might get enough money to start your business without having to pay it back.

Charles Dovbish is a freelance writer that specializes in business and business start-ups.

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