Getting a business off the ground isn’t easy. Whether you want to own a boutique or are looking to run a brand new designer retail store, finding the right funding is a necessity. Starting a new business is expensive and in order to get your retail store up and running, you’ll need enough in the bank to start and stay in business. While this is a process that requires many considerations, here are 3 of the routes you can take to find capital for your new retail store.
While it is important for small business to accept credit cards, having a credit card for your business is one way to fund necessary expenses. Using a credit card can be risky if you don’t anticipate being able to pay off your balances in the near future, e.g. 90 days. A business credit card is how some small businesses have been able to fund operations and choosing the right card is important. Make sure you look for a business credit card with permanent rates that are low and an introductory rate that is even less. To keep the credit card debt you will acquire until you are able to pay it all off, be frugal and buy only what you need.
There are a few different places new businesses can look for a business loan. Acquiring a loan can be a bit of a challenge, however, if your credit score is low. You’ll also need a well-put-together business plan to present to financial lenders that incorporates financial predictions to demonstrate you’ll be able to make your loan repayments. The SBA(Small Business Administration) backs loans – from the 7(a) Loan to Microloan programs – that are open to any small business, but there are a number of qualifications. In recent times, small banks are more likely to take chances on small businesses such as a new retail store.
Some startups and new businesses are able to fund a new business on their own, from life savings or other means. If you can’t, turning to friends and family is an option. When you turn to your loved ones for financial backing, you’re risking your future success and their financial future. Make sure you have a business plan in place with financial projections and are able to have a contract in place. Letting those who support your new retail store ventures should be made aware of when they will receive their money again, though it could be lost, and have a clear understanding of what their financial contribution’s status is as a loan or if you’ll offer equity.
Taking these steps can help you avoid miscommunications down the road.