When you first consider starting a business, it’s easy to get carried away with the “what if” that comes with outside funding.
“What if our first office was large enough to impress large clients?”
“What if we could start by hiring all of the top industry professionals?”
“What if we didn’t have to risk our livelihood?”
These aren’t just dreams. They’re valid considerations; definite possibilities. A sizable investment in your company’s foundation could give you a great head start. And depending on your area of expertise, it might be absolutely necessary.
But “what if” you can do it yourself?
It’s not without it’s own dangers, but if you have the necessary amount of personal savings to fund your startup, writing a loan to your own new business venture just might be the way to go. Here’s a few reasons why:
Urgency
When you’re spending your own money, the ticking clock is loud and clear. You touch and feel every dollar as it leaves your hands. It’s not for the faint of heart, but the sense of urgency this instills in your daily business can provide priceless motivation. It’s not just your new business on the line, it’s your immediate financial future.
Speed
The time it takes you to launch your business could be the difference between success and failure. All too often, a small business with all the right ideas and resources meets its demise due to its reliance on pursuing startup capital. When you hold the purse-strings, the only thing you’ve got to wait for is confidence.
Simplicity
There’s nothing more cut-and-dry than relying on yourself. The legal process is significantly less complicated. Your risk is self-contained. And the best part — when you succeed, you keep it all for yourself.
So how do you know if you’re prepared to finance your small business yourself? In the end only you can decide, but an experienced small business professional will help you get started by assessing factors like your initial overhead and the profit potential of your business. Though the process is much easier than arranging outside funding, it’s still important to work with a small business attorney to assure your arrangement is set up to protect you and your business as you move forward.
Now what if you made an investment in yourself today?
Tags: do it yourself, Finance, small business
