Starting a new business enterprise of your own is always an exciting endeavor for any enterprising entrepreneur. The idea of introducing a new unique product into the market, being one’s own boss, chalking out your own future and building a legacy are some of the reasons why people opt to venture into this field. However, there is a number of numerous mundane facts you need to address to ensure the success of your organization. One of the most important among these is finding a way to obtain the necessary funds you need to start your venture or helpfacilitate its growth.
ScottTominaga – A financial professional with years of invaluable experience
In the initial stages, many enterprising entrepreneurs prefer to look for ways to finance their own business enterprises. For this, you need to make a comprehensive list of the assets you presently own and their requisite market values. It may come as a surprise to you to know the type of resources you have at your disposal. Such assets may include savings accounts in banks, insurance policies, real estate properties and even liquid cash. You can go to the extent of selling some of the assets you have in your possession to get more cash. The advantages of some of these modes of self-financing your business are as follows:
If you own investments in form of shares, mutual funds or bonds you can opt to use these assets as a resource to finance your business venture. Scott Tominaga , a skilled financial professional from Carlsbad, California, says you can do this by obtaining a low-interest margin loan against such assets from your broker. However, you need to keep a close watch on the developments taking place in the stock exchange if you opt for this mode of finance.
- Personal Credit Cards
On other hand, you can also use your personal credit cards to obtain the funds you need to start your business. However, most financial experts insist you consider this as a last option because it is an expensive mode of finance.
- Real estate
If you own a residential property in your name, you could opt from an equity loan against that part of the mortgage you have been successful in paying off. In such a situation, most financial institutions are willing to extent to you a lump sum of money as a loan or a credit line depending on the present market value of your home.
- 401(K) retirement plans
If your present employer e manages a 401(K)-retirement plan in your name, you take a loan against this scheme to start a part-time side business while continuing with your present job. You are eligible to borrow an amount equivalent to 50% of the sum of money you invest in this scheme subject to a limit of $50,000.
Enterprising people who want to entrepreneurs sometimes have funds to finance their new business ventures without even knowing it. Scott Tominaga says it is prudent on your part to use the money you have at your disposal when it comes to being your own boss. Generally, it is easier mode of obtaining the capital you need for such projects.