• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Thrifty Husband

Tales from a Thrifty Husband

  • Home
  • About
  • Making money
  • Saving money
    • Christmas
  • Shopping
  • Thrifty Food

April 7, 2018 By Tony Drew Leave a Comment
This post may contain affiliate links.

How To Fund Your Money Making Idea

Image Credit

 

If you’re planning to make some extra money by setting up a business beyond the scope of buying and selling items at car boot sales then it’s possible you’re going to need some start-up capital behind you.

This can be a challenge, particularly with the current economic climate, as the majority of people are unable to get a loan from their bank in order to start a business unless it is secured on their property; which is a risky and uncomfortable prospect for most people just dipping their toe into the entrepreneurial river.

 

Raising capital to start a business is rarely an easy task.  

 

Indeed, entrepreneur’s can face immense emotional pressure and work very long hours; all the time knowing the odds are heavily stacked against them.  However, if you’re reading this article there’s a good chance you have an idea in you that just won’t go away… a spark of brilliance that you know could make a difference to the world and transform your financial situation.

It might be something small that fits around your lifestyle or you might aspire to be the next Richard Branson.  The thing that makes entrepreneurs different is their vision, focus and determination. All very admirable qualities but without cash in the bank to fuel their mission they won’t get anywhere fast.  This article therefore looks at three simple ways you can fund your business idea:

GET A BUSINESS LOAN

The most traditional route for setting up a small business is to get a small business loan.  This way you keep complete control of your company, as you aren’t having to offer equity to external investors, who each get a say in how your company is run and a share in the profits.  Moreover, you are only having to convince one person rather than a panel of investors in a Dragon’s Den like scenario.  

As mentioned above, it can be difficult to get a business loan however unless it is secured against an asset or you have a great track record as a business person.  If you’re starting out and don’t need much, it might be better to either use your savings and/or ask friends and family

FRIENDS AND FAMILY (INVESTOR)

Similar to how people invest in Dragon’s Den for a proportional measure of equity in your business, your friends and family could become shareholders in your business.  This would however, mean registering a limited company with companies house and then all the shareholders own the limited company, including yourself.  Again, it’s worth considering the strain this could put on your relationships though, if the business doesn’t work out.

FRIENDS AND FAMILY (LOAN)

If you have friends and family who are open to backing your business for a small incentive (such as interest on the loan) this can be a great option.   It will usually cost much less and be easier to arrange than a bank loan, however, borrowing money from friends and family can come at a social cost.  Just think how you and the other person would feel if the business doesn’t work out and you lose all the money they loaned you or invested in the business.

Filed Under: Other

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

About Thrifty Husband

Hello, I'm Tony, also known as Thrifty Husband. Living a thrifty life means that we can afford the luxuries we want instead of just the bills we have to pay.

Click here to read more.




Connect with me

  • E-mail
  • Facebook
  • Instagram
  • Pinterest
  • Twitter
  • YouTube

Facebook

Footer

Instagram

No images found!
Try some other hashtag or username

Recent posts

  • Win a Marks and Spencer Hamper
  • UK Bloggers Summer Giveaway
  • How to save money on your life insurance and make the most of your investment
  • Win one of eight Christmas hampers
  • Win one of five Christmas hampers
  • Win one of 6 M&S hampers
  • UK Money Bloggers Easter Giveaway
  • 5 Ways to Raise Some Extra Cash in January
  • What to do with items that haven’t sold on eBay
  • 10 Little Ways of Saving Money in Orlando, Florida

Disclaimer

Thrifty Husband is a monetised blog, meaning that there are sponsored posts and affiliate links. Affiliate links means that sometimes if you click through to a website and register or purchase something, I get a commission from that sale. All opinions and reviews are my own.

Copyright © 2021 · Brunch Pro Theme On Genesis Framework · WordPress · Log in

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish.Accept Read More
Privacy & Cookies Policy

Necessary Always Enabled