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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 July 16, 2019

7 Powerful Habits To Win In Office Politics

7 Powerful Habits To Win In Office Politics

Office politics – a taboo word for some people. It’s a pervasive thing at the workplace.

In its simplest form, workplace politics is simply about the differences between people at work; differences in opinions, conflicts of interests are often manifested as office politics. It all goes down to human communications and relationships.

There is no need to be afraid of office politics. Top performers are those who have mastered the art of winning in office politics. Below are 7 good habits to help you win at the workplace:

1. Be Aware You Have a Choice

The most common reactions to politics at work are either fight or flight. It’s normal human reaction for survival in the wild, back in the prehistoric days when we were still hunter-gatherers.

Sure, the office is a modern jungle, but it takes more than just instinctive reactions to win in office politics. Instinctive fight reactions will only cause more resistance to whatever you are trying to achieve; while instinctive flight reactions only label you as a pushover that people can easily take for granted. Neither options are appealing for healthy career growth.

Winning requires you to consciously choose your reactions to the situation. Recognize that no matter how bad the circumstances, you have a choice in choosing how you feel and react. So how do you choose? This bring us to the next point…

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2. Know What You Are Trying to Achieve

When conflicts happen, it’s very easy to be sucked into tunnel-vision and focus on immediate differences. That’s a self-defeating approach. Chances are, you’ll only invite more resistance by focusing on differences in people’s positions or opinions.

The way to mitigate this without looking like you’re fighting to emerge as a winner in this conflict is to focus on the business objectives. In the light of what’s best for the business, discuss the pros and cons of each option. Eventually, everyone wants the business to be successful; if the business don’t win, then nobody in the organization wins.

It’s much easier for one to eat the humble pie and back off when they realize the chosen approach is best for the business.

By learning to steer the discussion in this direction, you will learn to disengage from petty differences and position yourself as someone who is interested in getting things done. Your boss will also come to appreciate you as someone who is mature, strategic and can be entrusted with bigger responsibilities.

3. Focus on Your Circle of Influence

At work, there are often issues which we have very little control over. It’s not uncommon to find corporate policies, client demands or boss mandates which affects your personal interests.

Gossiping and complaining are common responses to these events that we cannot control. But think about it, other than that short term emotional outlet, what tangible results do gossiping really accomplish? In most instances, none.

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Instead of feeling victimized and angry about the situation, focus on the things that you can do to influence the situation — your circle of influence. This is a very empowering technique to overcome the feeling of helplessness. It removes the victimized feeling and also allows others to see you as someone who knows how to operate within given constraints.

You may not be able to change or decide on the eventual outcome but, you can walk away knowing that you have done the best within the given circumstances.

Constraints are all around in the workplace; with this approach, your boss will also come to appreciate you as someone who is understanding and positive.

4. Don’t Take Sides

In office politics, it is possible to find yourself stuck in between two power figures who are at odds with each other. You find yourself being thrown around while they try to outwit each other and defend their own position; all at the expense of you getting the job done. You can’t get them to agree on a common decision for a project, and neither of them want to take ownership of issues; they’re too afraid they’ll get stabbed in the back for any mishaps.

In cases like this, focus on the business objectives and don’t take side with either of them – even if you like one better than the other. Place them on a common communication platform and ensure open communications among all parties, so that no one can claim “I didn’t say that”.

By not taking sides, you’ll help to direct conflict resolution in an objective manner. You’ll also build trust with both parties. That’ll help to keep the engagements constructive and focus on business objectives.

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5. Don’t Get Personal

In office politics, you’ll get angry with people. It happens. There will be times when you feel the urge to give that person a piece of your mind and teach him a lesson. Don’t.

People tend to remember moments when they were humiliated or insulted. Even if you win this argument and get to feel really good about it for now, you’ll pay the price later when you need help from this person. What goes around comes around, especially at the workplace.

To win in the office, you’ll want to build a network of allies which you can tap into. The last thing you want during a crisis or an opportunity is to have someone screw you up because they harbor ill-intentions towards you – all because you’d enjoyed a brief moment of emotional outburst at their expense.

Another reason to hold back your temper is your career advancement. Increasingly, organizations are using 360 degree reviews to promote someone. Even if you are a star performer, your boss will have to fight a political uphill battle if other managers or peers see you as someone who is difficult to work with. The last thing you’ll want is to make it difficult for your boss to champion you for a promotion.

6. Seek to Understand, Before Being Understood

The reason people feel unjustified is because they felt misunderstood. Instinctively, we are more interested in getting the others to understand us than to understand them first. Top people managers and business leaders have learned to suppress this urge.

Surprisingly, seeking to understand is a very disarming technique. Once the other party feels that you understand where he/she is coming from, they will feel less defensive and be open to understand you in return. This sets the stage for open communications to arrive at a solution that both parties can accept.

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Trying to arrive at a solution without first having this understanding is very difficult – there’s little trust and too much second-guessing.

7. Think Win-Win

As mentioned upfront, political conflicts happen because of conflicting interests. Perhaps due to our schooling, we are taught that to win, someone else needs to lose. Conversely, we are afraid to let someone else win, because it implies losing for us.

In business and work, that doesn’t have to be the case.

Learn to think in terms of “how can we both win out of this situation?” This requires that you first understand the other party’s perspective and what’s in it for him.

Next, understand what’s in it for you. Strive to seek out a resolution that is acceptable and beneficial to both parties. Doing this will ensure that everyone truly commit to the agreed resolution and will not pay only lip-service to it.

People simply don’t like to lose. You may get away with win-lose tactics once or twice but very soon, you’ll find yourself without allies in the workplace.

Thinking win-win is an enduring strategy that builds allies and help you win in the long term.

Featured photo credit: Unsplash via unsplash.com

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