Most business owners in New York don’t have tens of thousands of dollars sitting around. To start your own business, you’ll need to raise capital to pay for your expenses. Capital can include loans, donations, fees and other funds that help you get your business off the ground.
How do you raise capital?
In modern times, many start-ups use crowdfunding to earn capital. Crowdfunding is the act of pitching your concept online and allowing anyone to donate to your business. In return, they get a set of tiered rewards. Unlike loans, you don’t have to pay back the funds you raise through crowdfunding–you just have to follow through on the start-up and the rewards that you promised. The Internet has several crowdfunding platforms that help you reach a wide audience.
Taking out a bank loan is the more traditional option. If you have good credit, you can apply for a bank loan that covers start-up expenses like buying supplies, paying your employees and securing a location. Some banks allow you to borrow hundreds of thousands of dollars. Just make sure you don’t take out more than you need–you’ll have to pay it all back later.
Before you start looking for funding, it’s important to have a business plan. If you plunge right in, you might get overwhelmed and find yourself unable to fulfill your obligations. Your potential investors will want to see a business plan so they can gauge whether your business will be profitable or not. At the same time, you might want to hire an attorney who could educate you about business law.
Do you need an attorney when you’re just starting out?
Many people assume that they don’t need an attorney unless someone sues their company. However, the start-up period is actually one of the best times to hire an attorney. Your attorney could help you avoid making mistakes that might tank your business later on. They might offer advice on securing capital, finding investors and writing contracts that protect your business. Plus, if someone serves you with a legal challenge, you’ll already have an attorney on your team.