Right, so you have found what you believe to be the right internet business opportunity but you don’t have the start-up capital and enough money to stay afloat until you start making a profit.
You need to be really sure about this because several options are open to you to get that start-up capital. Here are three of these options, bearing in mind the costs of repayment and timeliness.
Save Up for the opportunity
This is the least risky way of obtaining start-up and working capital. You will have pressure to succeed but not as much as you would if you had to repay a creditor. The downside to this option is that it may take you a while to save up. Would the delay make the opportunity less attractive in terms of profit potential? Would the market be saturated before you enrol? You need to do thorough research to establish this.
Loan from friends and family
This is a quick way to get funds required to start your business. However, it is important that you are totally honest in letting them know what the money is for.
If they know it is for you to start a network marketing business, they may not want to lend you the money due to the low success rate in the industry as a whole. On the other hand, they may lend you with the expectation that the risk exists you may not pay them any time soon. Thirdly, they may opt to give you the money instead, with a caveat to repay only if you re successful.
Their decision may be influenced by how much you require. Bear in mind that there is a significant risk of alienating your friends and family if you do not manage your finances appropriately causing you to default on your repayment or failing in the business.
Loans from banks
This is another option especially after you’ve exhausted the avenues above and maxed out your credit card. Depending on your creditworthiness, you may be able to get a personal loan from your bank.
However, many banks do not do personal loans for business purposes. They may also be unwilling to offer a business loan for what they would undoubtedly consider a risky project. Read their terms and conditions carefully, paying particular attention of term of the loan and interest rates. Also answer all questions as honestly as you can.
Another option is to secure the loan on your home if you have one. You should think carefully about doing this, as you may risk losing your home if you fail to keep up with repayments.
If you have spotted that business opportunity and you are itching to start but do not have the funds, all is not lost. You just need to be very careful you do not overextend yourself, put you and your family at risk, alienate your friends and family or risk losing your home as you chase your dream.