Startup businesses tend to face a lot of challenges, and one of which is finances. It wouldn’t be easy. You might not immediately acquire land, employees, or even an office space. Unless you were born rich or you have relatives rich enough to fund everything, then you’ll have to work extra hard to get your own startup warehouse.
Warehouse spaces alone are not easy to buy at all. It’s one of the most significant investments you have to consider when thinking of starting a business and getting an office. However, some companies offer a great deal of warehouse spaces like warehouse space for sale in Kansas City. With the right amount of research, budget, and funding, you can acquire and start designing your startup warehouse office in no time. Below are a couple of ways on how you can finance your startup warehouse:
It’s always best to consider personal financing first before anything else. If you have enough savings of your own that you’re very much willing to pour out into your startup business, then, by all means, use it. In that way, you won’t be worrying about not being able to pay other people or a bank loan in time. And besides, it won’t be easy getting a third party to lend you money for your business.
Family or Friend Loans
The most influential people in your life will always be the first few ones excited to see you thrive and succeed in life. Perhaps, if you have come to the conclusion that your personal savings won’t make the cut, try asking your family and friends to offer a humble deal of budget or money to help you establish a startup office warehouse.
However, borrowing money from your family and friends also has its downsides. It can be tricky, and you might want to weigh in all the pros and cons that come with it.
Crowdfunding is one popular approach in raising your finances or budget through a platform. Instead of pitching on potential investors or contributors, you can use a common platform where all types of people–whether investors, ordinary people, shareholders or businesspeople–can view your pitch and extend funds to you if they wish to do so.
One example of a crowdfunding platform is GoFundMe, which people typically use for personal life events and the like.
Angel investors are commonly wealthy people who are always on the lookout for startup businesses that they see potential in. A lot of big, successful, and pioneer companies today have been funded by angel investors before. In most cases, if not all, taking money from angel investors means you are willing to give them 10% of your equity, at the very least. Some angel investors require more than 10% or lay down their options.
Venture capitalists are very much alike with angel investors. Although venture capitalists look for startup businesses that they see more potential in terms of growth and development as well as a higher return on investment. In the same way, venture capitalists usually request that they get to pitch in their ideas and opinions or basically have a voice in the company.
Small Business Administration Loans
Small Business Administration or SBA loans are US government-operated sectors which see potential in small, startup businesses. Because of this, the SBA offers a wide range of loan plans for starting entrepreneurs to help them establish their businesses initially.
There are a whole lot more financing options available. However, regardless of which type you prefer, always make sure to research and investigate firsthand, so you don’t worry about paying loans in the long run. One wrong move today can cause you so much damage tomorrow. It’s also better if you try interviewing experienced businesspeople so they can give a few tips or pieces of advice when it comes to starting your own business.
Darrent is a digital marketer, tech enthusiast & blogger.