Taking the leap to self-employment and starting your own business takes a lot of courage. It’s far easier to stay in a job you dislike just because you are guaranteed a paycheck and health insurance. The retirement savings can’t be ignored, either.
All of those financial securities go away when you work for yourself. In addition, the stress you may have experienced at your old job may disappear, but you’ll likely have a new type of stress–stress to make sure your business makes enough money and that you can keep it running so you don’t have to go back to the grind of working another 9 to 5 job.
However, there are many companies, especially banks that focus on commercial finance, that can make your journey a bit easier. You don’t have to go it alone and hold all of the financial pressure yourself. There are other options available to help you find the money you need when your business is small and cash flow can make or break it.
Factoring is a great option for small businesses because you are given money upfront from the bank when you complete a job rather than having to wait 60 to 90 days or more for your customer to pay their invoice. This can give you the money you need to have fluid operations and not worry about a cash crunch.
In addition, if you need a business loan, you can, of course, seek financing from a bank. However, if you’re turned down there, you have other options.
Crowd funding is another alternative. Many small businesses have found financial success this way.
Alternatively, you could look for funding through a peer to peer lending site, though the interest rate you would pay here likely would be more than what you’d pay from other sources. However, in the beginning, if you need to increase cash flow, this may be a perfect step.
Don’t forget to also consider friends and relatives who may be willing to invest in your new found business. Of course, you’d want to have a contract that clearly states repayment terms so there is no misunderstanding on either side. There’s nothing worse than jeopardizing personal relationships over money.
If you hate your job and want to start fresh by working for yourself, there are plenty of ways to address your cash flow issues. As you’re business grows, you will likely be more financially solvent and see some of the financial pressures ease.