Forms of Funding for Your Self-Employed Venture

Are you ready to leave your corporate job behind and become a self-employed professional? Do you require some funding in order to make this move?

If you don’t know how to fund your self-employed venture it doesn’t mean you are out of luck. It simply means that you need to become familiar with the many options that are available to you.

Here are three forms of funding that you absolutely need to consider:

•    Personal savings. This is the best place to turn for funding, as it allows you to access the cash you need without taking on debt. It may not be ideal to take money from your personal savings, but it allows you to start your business debt free – and there is a lot to be said for that.
•    Credit card. You need to be careful with this approach, as you don’t want to max out a credit card in an attempt to get your business up and running. Remember this: you are still required to repay the money even if you don’t achieve success.
•    Friends and family. A route that many people take, you may find it easier to secure a loan from a friend or family member as opposed to a bank or credit union. If you’re going to consider this, it’s imperative that you treat the loan just as you would if it were from a bank. Don’t take advantage of your loved one, as this could jeopardize your relationship.

These are just a few of the most common forms of funding when a person decides to make the move into the world of self-employment. As you compare the pros and cons of these options, among others, you can decide what will work best for you.

Have you secured funding to jumpstart your self-employed career? Where did you find the money? Share your personal advice in the comment section below.