September 3, 2012 by entrepreneurapproach
The biggest and most hardest obstacle for anyone starting out is definitely money.
Not only is it hard to get, but going on the search for it can be a daunting task in itself. No one feels comfortable going in front of a high payed executive to ask them for their earnings to put into a business that is not even trading, or taking the scary step of getting a loan from the bank, with a fixed interest rate that you need to meet to ensure you stay out of trouble.
And it gets worse as a teenager. People are less willing to trust you with their money (I’m not saying this happens all the time but its common), and banks need some form of income to allow you to apply for a loan.
So what can you do to gain some capital?
Well apart from the two ways mentioned above i will try to give you a few tips.
1. A small way to gain some form of start up capital is to allow yourself a budget each week in which you automatically transfer money into savings account. I get money from the government each week and i have it set up so that as soon as it comes into my account, $20 gets transferred to savings. Now i know this is a small amount, but if you start doing this even before you have your idea, by the time you need it you may have a couple of hundred sitting in your account
2. Present your idea to family and friends just like you would to an investor. i was surprised at how many friends of mine have said that if i need investment they are willing to put money into it after telling them my idea. If someone is willing to put in $1000, tell them you will make them a return on their investment. It saves you losing a chunk of your business, but means you have money to work with and they end up making a profit for doing nothing.
3. If you are studying, get a part time job or a job over summer, anything you earn should be put away as soon as you get it. Think of it as a self investment. if you believe that your business can do great things, then a few hours a week working will be well worth the future you want.
Hope this short post helps to spark some thinking about ways to save capital. These are methods that i have done myself and they are a quick and safe way to gain some start up capital.
Feel free to comment about any other ways you have gained some working capital! Its always good to hear other peoples opinions.