It’s all too easy to get hung up on your past. You can think about the mistakes you’ve made, the financial errors, committed, and all the other missteps that humans typically take. However, if you want to own a business, then you’re going to have to let these past mistakes go. There’s only the future, so forget the past! Of course, sometimes it’s easier said than done. This is especially true when it comes to your financial situation. So if you have a poor financial history, what are your options when it comes to setting up a business? We take a look below.
Small Steps
Your personal financial landscape might not look all that healthy at the moment, but it doesn’t have to be that way forever. It’s relatively straightforward to make small improvements to your credit score and the like, and if you start now, in a short amount of time you’ll feel much more confident about your situation. This will make it easier for you to stump up some of your own cash, while also giving you confidence in your money managing skills. Remember, there are few financial situations that are insurmountable; it’s all about taking the first step.
A Solid Business Plan
You’ve got a history of financial mistakes, but that really does belong in the past; you know what you’re doing now. You’ve learned from those mistakes, and that’s all that anyone can ask. You might have to prove that, however. To do that, it’s all about creating a robust, watertight business plan. This will show potential investors that you’ve thought through your idea thoroughly and that what you’re trying to set up is a viable, sustainable business.
Alternative Funding
If you have bad credit, then you might struggle to get funding via a regular bank loan. Fortunately, this is not the only option that’s available to you. In this day and age, there are multiple funding options available! If you’ve got an idea that you know people will love, consider going down the crowdfunding route. It’ll enable you to get the money you need up front, and in return, your customers will get a gift of your choosing. You can also look at subprime loans, for which there is less importance on a person’s credit score. Even if your financial history isn’t perfect, there will be money available to you to cement your future!
Friends and Family
If you’ve got a killer business idea, why not share it with your friends and family? If they are in a position to do so, they may be willing to invest in your company, or even come on board as a fully-fledged partner. While you may wish to retain control of your idea, there are advantages to adding a partner, and it can also be less risky – and more fun – too!
Whatever path you take, stay positive and good things will come. If your idea is good enough, it has the potential to be a success, even if you don’t have all the money in the world.
