Rabu, 04 April 2018

Be Professional Through Bootstrapping

I will discuss how to protect yourself when it comes to booting your business by receiving money from your friends and family. First let's specify what is bootstrap, according to Business Dictionary; Bootstrap funding is when individuals use their own money to finance their start-ups, simply withdrawing money can come from their income and the savings they may have accumulated. Making money for your startup is sometimes difficult, so you might want to consider asking family and friends. To take money from people close to you can be extra stress, but in the process of getting funding, you need to stay professional, informative, and consistent. By being professional, informative, and consistent about your start-ups, you provide everything that is invested with easy and guaranteed. I will explain three ways that can guide you in dealing with family and friends.

According to Beesley (2016) 3 ways to get funds properly from friends and family are as follows:
1. Showing Passion and Due Diligence- In this example, it is important for entrepreneurs to be passionate about their business. You should be able to provide a clear explanation of how your business operates, as well as to help your family and friends understand the sustainability and benefits of your business. By presenting a business plan that has a research-based analysis will ease anxiety on both sides.

2. Appears Agreement with a Refund Plan - While you may have a good relationship with your friends and family, you should keep it that way. The best way to help you stay in a good position is to treat every encounter with your friends and family like a business. Always have a detailed plan on finance, company progress, and detailed payment plans. The plan you present should have every business detail so they will not have a reservation and if they have they can opt out if they want to.

3. Use a Peer-to-Peer Loan Service - This tip will help you keep your business free of emotions. To maintain peace, you may want to consider using a colleague's loan company. This concept is when you and the person who lends you money, use a mediator or intermediary to handle loan repayments. Both parties will come up with the agreement, and the colleague's loan will ensure that the rules are followed. The Peer-to-Peer concept keeps the process clean and gives the creditor confidence that the loan will be fully paid, and for that service there is a small fee applied.

In conclusion, staying professional, informative, and consistent with your lender will help you grow your business. The three tips above will guide you in your business venture, as well as build your name to be a reliable and trustworthy borrower. Keeping good names is very important to all business owners and especially to new owners.

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