You should use all possible alternative options of finance and other support to establish your business and stabilise its performance. And here are a few options to consider.
Borrow from friends and family
You can use the funds for getting started and then borrow from a financial institution once your venture is stable. Generally, even if you decide to use a business loan right from the start, you may have to ask the people around you to become co-signers. There’s one simple rule to keep when it comes to borrowing from family and friends; you have to do it professionally so that they can have peace of mind about their money.
Or alternatively start small in your business
You may have big plans for conquering the local and national market, but it’s impossible to achieve this right away. That’s why it pays off to down scale your plans so that they match the amount of finance which you can obtain.
Negotiate with suppliers
You’ll go a long way, if you rely on personal contacts and high business ethics. You should try to arrange a longer term for paying your suppliers so that you can manage your money more easily and more effectively. They’ll most certainly show some flexibility, especially if you’ve paid them timely and in full in the past.
Negotiate with clients
If you’ve secured a contract, you can arrange the client to pay a deposit and then to make progress payments as each part of the project is completed.
Collaborate with other businesses
You can share assets with other business owners or use their facilities for a share of the profit which you’ll earn.