Raising Money For Bathroom And Kitchen Business
Whether the business is at a start up stage or is a well established one, the infusion of funds is always required. Raising funds from a suitable financing source is a difficult job as there are several factors to be considered before making this decision. Cost of raising fund, stage of the business, dilution of stake, method of repayment, are some of the factors that shall be considered before making a decision on raising funds. One must have a good business plan in the business of bathroom and kitchen for raising funds. This will be beneficial in making the financiers hopeful about multiplication of the money invested and hence make funding easier for the fund seeker.
Before weighing the different options for raising money for bathroom and kitchen business, it is important to understand what all comes under the purview of it. Bathroom and kitchen business can include bathroom fittings business, bathroom remodeling business, business of selling kitchen utensils, kitchen fittings business, kitchen remodeling business, modular kitchen designing business, or a combination of any of these.
Raising money for Bathroom and Kitchen Business
Raising money is a basic business activity and a key to successful business start up and expansion. There are various options available these days to raise the requisite money for bathroom and kitchen business. Each source of raising funds has its pros and cons attached to it. The decision of which source of funding will be suitable will depend on various factors. The following points throw light on some of the sources of raising funds for bathroom and kitchen business:
? Personal Financing: Personal savings is the first source available for financing your bathroom and kitchen business. If the scale of starting or expanding the business of bathroom and kitchen items is not very huge, personal financing can be a sufficient source of funds. One can use personal cash, bank balance or can put up for sale items which are not of your use anymore or can liquidate gold, mutual funds, stock, bond and other investments. Also, in this case you do not lose control over your business. However, everyone is not interested in utilizing their personal savings for the purpose of business for several reasons. They might want to secure the money for their retirement or any emergency situation as a contingency reserve. In this case, people look for various other sources of raising funds for their bathroom and kitchen business.
? Raise money from near and dear ones: For starting or expanding the business of bathroom and kitchen items, it might be useful if one can approach our family and friends and raise money from them. The benefit of raising funds from this source is that your near and dear ones are expected to be more confident about your business idea, require less assurance than other investors and are more patient if the business is taking a longer time to generate returns than expected. Some people avoid utilizing this source as they want to avoid putting strain on the relationship.
? Venture Capital Funding: Venture capitalists are professional people or companies who provide funds for a start up business in which they find scope of high returns on their investment. Venture capitalist can be approached for getting funds if the business plan is good. Also, convincing skills play a major role in this case. If money for the business of bathroom and kitchen items is raised from this source, the venture capitalists might ask for a stake in the business and the business owner might lose 100% control over decision making. Thus, it will be good if the money of the venture capitalist is repaid as soon as the business starts earning returns.
? Raising money from Angel Investors: Angel investors are private investors who are interested in investing their money in non-traditional options and get higher returns than traditional sources like mutual funds, stock etc. They can be your lawyer, doctor or any other person who is interested in investing in your bathroom and kitchen business for a stake in the business.
? Bank term loans: Approaching a bank for term loan is another option for raising funds for starting up or expanding your bathroom and kitchen business. In this case you must have adequate documentations and projections available with you.
? Seeking cash credit and overdraft limit from banks: A cash credit limit or an overdraft limit is also a good option. In the business of bathroom and kitchen items, if you are not sure about the timeline of payments, you can go for this source of raising funds. The interest in this case will be charged only on the amount utilized.
? Go online: Several websites are available which match up the requirements of capital seekers and investors. You can place your requirements in such websites for raising funds for your bathroom and kitchen business.
? Approach small business investment companies: Small business investment companies invest in small scale businesses in which they find good potential of growth. You can also approach such companies for starting up or expanding your bathroom and kitchen business.
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