Starting Up — Business Loan
Malikyte asked also about breaking in with a business loan.
Good luck! Few banks will loan you any money on a startup professional business.
In the US, your best shot is an SBA loan. However, these are annoying to get, and the bank typically needs to see collateral in the form of a home or other assets. So if you have a home, and want to risk it, you are better off just refinancing to cash out your equity.
But don’t do that.
Instead, save enough financial reserves so you can cover the expenses of your business and your living expenses for 1-2 years. (Or make sure you can live off your spouse’s income, if you are married).
When you have enough financial reserves, two things happen:
1. You don’t come across as desperate to your clients.
2. You feel confident because you have the time you need to get business.
Finally, if you can, don’t make the leap until you have a couple clients lined up. That sounds like a strange Catch 22 to line up clients while working a job, but that’s what many of my colleagues did. They started a business only when they landed some clients (which they managed to do while working full time jobs — and using vacation time wisely). That way, cash flow wasn’t an issue at all.
Next blog….the marketing tactic you need to know to jump start your business fast….