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7 Efficient Ways to Fund Your Small Business

7 Efficient Ways to Fund Your Small Business

Making innovative small business ideas a reality takes funding. Figuring out where to land the cash to take your life’s passion to the next level feels like a bummer in the creative process, but it’s necessary for the actual success of your business plan. A small business dream is just that until you have the cash flow needed to launch it.

Here are a few legitimate places to look for funding for your small business:

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1. Personal Loans

Many small business owners put their personal assets on the line to make their business dream a reality. It can be a risky approach – but with a smart business plan, the return on investment may be worth it. The sage advice is to never mix business and personal finances but launching your small business is an exception. Small business owners who are considering this route must have good credit that includes a track record of timely repayments.

2. Bootstrapping

In some cases, a small business doesn’t even need much initial cash to get started. Businesses that have low overhead and initial inventory costs can start selling goods or services and then use that revenue to continue to purchase what is needed to make the business successful. There are pros and cons to bootstrapping so weigh the options before diving in. One major pro is that by bootstrapping your business from the start you won’t need to give up any equity in the business to an investor. This leaves you in control of all the business decisions and gives you the greatest payout down the road when you sell the company.

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3. Business Credit Cards

If you expect a quick return on your small business investment, consider getting a business credit card. Dedicate your earliest revenue to paying off those cards so you don’t end up with interest charges that take away from your profit. A credit card that is consistently maxed out will also hurt your credit score and hinder future financial decisions. If this is the right route for you, choose from major credit card providers like Visa and MasterCard, or go with a bank business credit card.

4. Family and Friends

Many people are leery of involving friends and family in business decisions, especially when it comes to money. But with the right business plan, involving family and friends could be a benefit for everyone. Don’t expect your loved ones to hand over cash just because they like you though; give them a strong business plan to look over and present your small business idea as if they were stranger investors. Create a legal document for repayment. Make the money they lend you a priority for repayment, including whatever interest or return is promised.

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5. Banks

Speaking of banks, these traditional institutions offer small business loans. A few years ago, these loans were difficult to secure due to the state of the economy but today is it much easier to land a small business loan through a bank or credit union. Do some research into what banks and credit unions are small business loan friendly, and which ones tend to loan to your industry. You don’t want to lock yourself into a bad deal, but with some vetting you may be able to land the exact funding you need.

6. Crowdfunding

The popularity of crowdfunding sites like Kickstarter has brought this form of non-traditional small business fundraising to the forefront. Usually, the small business owner offers something in exchange for the minimum investment – perhaps one of the products or another novelty item. It’s easy enough to list a small business need on these sites, but there are hundreds of thousands of projects in competition for investor funds.

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7. Retirement Funds

If you’ve been socking money away in a 401K for several years, you can tap into that money for a small business loan. Make a plan to return the money, however, because even small business owners want to retire at some point.

There are seemingly endless avenues for small business funding – but there is also a lot of competition. You’ll want to tailor your “ask” based on the format of the funding request. Figure out which one makes the most sense for your return on investment timeline and then start asking.

Featured photo credit: Pexels via pexels.com

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Ryan Kh

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Last Updated on September 23, 2020

Do What You Love and Love What You Do to Achieve More

Do What You Love and Love What You Do to Achieve More

Are you waking up each day looking for that perfect thing, activity, or job that will make your life work? Or, maybe you are looking for that perfect relationship. Once you “get” this new thing that will allow you to do what you love, you are sure that you will be happy forever.

In reality, life doesn’t work like that, and we would probably get bored if it did. There is likely no one thing, experience, or activity that will keep you feeling passionate and engaged all the time. What’s important is staying connected to what you love and continuing to grow in the process.

Here, we’ll talk about how to get started doing what you love and achieving more in life through the motivation it brings. Doing this doesn’t have to take a long time; it just takes determination and energy.

Most People Already Know Their Passion

So many people walk around in life “looking for” their passion. They look for it as if true passion is some mysterious thing that is difficult to find and runs away once you find it. However, the problem is rarely lack of passion.

Most of us already know what we love to do. We know what excites us, even if we haven’t done it for years. Instead, we focus on what we think we “must” do.

For example, maybe you love building model cars or painting pet portraits. Yet, each day you work a completely unrelated job and make no time for the activity you already know you love. The truth is you probably don’t need to find your passion; you just need to start doing what you already know you’re passionate about[1].

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No Activity Is Exciting All the Time

Even people who are living their dream lifestyle or working their dream job don’t love it all the time. Every job or lifestyle has parts of it that we won’t like.

Let’s say your dream is to become an actress, and you succeed. You may not enjoy the process of auditioning and facing rejection. You may experience moments of boredom when you practice your lines over and over again. But the overall experience is totally worth it.

Most of life is like that. Don’t set yourself up for disappointment by demanding that life be perfect all the time. If things were perfect and easy, you would ultimately stop learning and growing, and life would begin to lack even more meaning in that case.

Be grateful for both the good and bad moments as they are both entirely necessary if you genuinely want to do what you love and love what you do.

Doing What You Love May Not Be Easy

Living a life you love is unlikely to be easy. If it was, you would not grow very much as a person. And, if you think about a great book or movie, the growth of the main character is what matters most.

What if the challenges you meet along your path to living a life you love were designed to make you grow as a person? You may actually start looking forward to challenges instead of dreading them. An easy life hardly ever makes a compelling story.

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If you struggle to overcome challenges, try writing them down each time you encounter one. Then, write down three ways you could tackle it. Try one, and if it doesn’t work, try another. This way, you’ll learn what does and doesn’t work for you.

How to Do What You Love

There are many small steps you can take to ensure you are making time to do the things you love. Start with these, and you’ll likely find that you’re already on the right track.

1. Choose Your Priorities Wisely

Many people claim they want to do something, yet they don’t do it. The truth is they might not really want to do it in the first place[2].

We all end up following through on what matters most to us. We make decisions moment by moment about what we need to focus on. What we choose to do is what we deem most important in our lives.

If there is something you claim you want to do but you don’t do it, try asking yourself how much you really want it or where it’s currently placed on priority list. Are there other things you want more?

Be honest with yourself: what you currently do each day is a reflection of your priorities. Recognize that you can change your priorities at any time.

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Make a list of your priorities. Really take the time to think this through. Then, ask yourself if what you are doing each day reflects them. For example, if you believe your top priority is spending more time with your family, but you consistently take on extra hours at work, you’re not really prioritizing things in the way you think you are.

If this is happening, it’s time to make a change.

2. Do One Small Thing Each Day

As stated above, doing what you love doesn’t have to mean finding that perfect job that makes you want to jump out of bed in the morning. If you want to do what you love, start with one small thing each day.

Maybe you love reading a good book. Take ten minutes before bed to read.

Maybe you love swimming. Get a membership at the local YMCA, and go there for thirty minutes after work each day.

Dedicating even a short amount of time to something that brings you joy each day will improve your life overall. You may find that, over time, a career path related to what you love to do pops up. After doing the thing you love each day, you’ll be more than prepared to take it on when the opportunity arises.

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If you need help making time for your passions, check out this article to get started.

3. Prepare to Make Sacrifices

If you are an exceptionally busy person (aren’t we all?), you may have to make sacrifices in order to make space for the things you are passionate about. Maybe you take on less extra hours at the office or take thirty minutes away from another hobby in order to develop another that you enjoy.

Looking at your priority list will help you decide what can get put on the back burner and what can’t. Remember, do this thinking about what will help you feel good about how you’re spending your time. 

For example, if you love writing but rarely make time for it, consider getting up 30 minutes earlier than normal. Or instead of browsing your phone for 30 minutes before bed, you can write instead. There is always a way to find time for what you love.

Final Thoughts

If you love what you do, each day becomes a joyful adventure. If you don’t love what you are doing, life feels like a chore. The best way to achieve success is to design a life you love and live it every day.

Remember, doing something you love doesn’t have to include big gestures or time-consuming projects. Start small and grow from there.

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Featured photo credit: William Recinos via unsplash.com

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