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CREDIT CARDS

If you have good credit, you should have (or be able to qualify for) several credit cards. These can be used to finance your business. For example, if you get 10 credit cards with a limited of $2,000 each, you have achieved access to $20,000 - a sum you would likely have difficulty borrowing. Be prepared to "max out" your cards if necessary. There is the disadvantage of very high interest rates, so you should constantly search for other sources of cash e.g. a debt consolidation loan at a lower interest rate, to overcome the disadvantage. As well, since these amounts are at such high interest, constantly pay them down as fast as you can.

7. INSURANCE PLANS

Examine your insurance policies. If you have "life" insurance, there will be an amount of savings. Cash in the policy and take out term insurance. Use the surplus for your business

8. BUY WISELY

New entrepreneurs often confuse the trapping of success with actual success. For example, they mistakenly believe that they must have the best car, or a fancy oak desk to impress customers. Your buying strategy should be completely opposite:

Look for "in kind" contributions

Buy used items.
This particularly applies to vehicles, equipment, furnishings, and such.

Improvise.
Many a large business has started with a door over two sawhorses as a desk.

Search out second hand stores, pawnshops, surplus stores, etc. for the best deal.

The less you have to spend in "start up costs", the more cash you should have for operating costs.

9. LEASE

In the early stage of your business, consider leasing:

Down payments and monthly payments are lower than purchasing.

Lease companies understand their business and, unlike banks (who are operating under different constraints , they better understand your business needs and how they fit in.

Leasing companies often have used products which can be leased at a lower cost

Leasing is particularly important with equipment and office machines. Often you will not be able to determine your exact needs in advance, e.g. what computer and software package do you need? Leasing provides you with the option to test equipment and machines so you can easily upgrade or down grade these items.

10. BARTER

Remain alert to opportunities in which you can receive goods or services for your business in trade for products and services from you. Trading for what your business needs does not even have to relate to your business.
For example, you might receive a specified number of accounting hours for snow removal.

Learn more about this author, Lorne Yacuk.
Click here to send this author comments or questions.

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