You need to spend money to make money.
Tired as this cliché may be, it does hold a certain truth, particularly when starting a small business. The good news is that, although it does involve some initial investment, launching a new venture or enterprise doesn’t take a lot of money. In this article, we’ll explore the various ways you can fund your small business.
Start by itemizing not only your one-time start-up costs, but also what you think you’ll need to keep your business afloat for at least 12 months. These combined costs represent the initial investment you’ll need to make.
Your one-time start-up expenses may include
- inventory
- legal fees
- insurance
- equipment
- market research
- licences and permits
- branding and trademarking
- property purchases or leases
- opening or other promotional events
Your operational costs may include
- supplies
- production
- travel expenses
- rent and utilities
- marketing and advertising
- your salary and employees’ salaries
Now that you have a clear idea of the investment you need to make, consider the various ways you can fund your business. These include, but are not limited to
- financing
- crowdfunding
- angel investors
- small business loans
- small business grants
One of these may be all you need, or you may wish to combine funding sources. Alternatively, if you wish to use as little investment capital as necessary to start your business, you may want to consider bootstrapping.
Unsure which option is best for your small business? The knowledgeable team at Lift Legal can help you consider each of the options and create a thoughtful plan to set up the capital you need.
Contact us today to learn more.
Disclaimer:
The information on this blog and website is provided by Lift Legal for educational purposes only. It is intended to give readers a general understanding of the law, not to provide specific legal advice. Information contained in these pages should not be used in place of competent legal advice from a licensed, practising lawyer in Alberta. Furthermore, by using this blog and website, you understand that no lawyer-client relationship exists between you and Lift Legal.
