How Much Should I Borrow for my Start up?

If you’re thinking about launching a new business, you may not know where to start with your finances. Here’s how to figure out how much you’ll need to launch your business and the best ways to get funding.

1. Be Reasonable and Realistic, Start Small

You most likely have high expectations for your company. However, blind optimism may cause you to invest too much money too quickly. At the very beginning, it’s smart to keep an open mind and prepare for issues that may arise later.

A prospective business owner should start planning a small business by simply understanding the potential of the business idea. The best approach is to test your idea in a small, inexpensive way that gives you a good indication of whether customers need your product and how much they’re willing to pay for it. If the test seems successful, then you can start planning your business based on what you learned. 

2. Estimate your costs.

According to the U.S. Small Business Administration, most microbusinesses cost around $3,000 to start, while most home-based franchises cost $2,000 to $5,000.

While every type of business has its own financing needs, experts have some tips to help you figure out how much cash you’ll require. Have a plan to cover your expenses in the first month and identify your customers before you open the door so you can have a way to start covering those expenses. When planning your costs, don’t underestimate the expenses, and remember that they can rise as the business grows.

The SBA states that there are various types of expenses to consider when starting your business. You need to differentiate between these costs to properly manage your business’s cash flow for the short and long term. Here are a few types of costs for new business owners to consider:

  • One-time vs. ongoing costs
  • Essential vs. optional costs
  • Fixed vs. variable costs
  • Direct Costs vs. Indirect Costs
  • Most common startup expenses
    • Web hosting and other website costs
    • Rental space for an office
    • Office furniture
    • Labor
    • Basic supplies
    • Basic technology
    • Insurance, license or permit fees
    • Advertising or promotions
    • Business plan costs

3. Project your cash flow.

Another important aspect of a startup’s financial planning is to project the business’s cash flow. New business owners should project their cash flows for at least the first three months of the business’s life. Add up not only fixed costs but also the estimated costs of goods and best- and worst-case revenues.

This is an essential step in maintaining your business’s financial health. Without being realistic about your cash flow and debt, you won’t be able to get your business off the ground, especially as other costs begin to build.

4. Figure out your financing methods.

Once you’ve determined your costs and projected your cash flow, you’ll need to consider how to pursue financing. How you obtain funds will affect the future of your business for years to come. Personal savings, loans from family and friends, bank and government loans, and grants are just a few potential funding sources. Many companies use a combination of different sources

Thinking of Starting a New Business?

Now is the time! With our society ready to get back in action (safely), new business concepts are quickly emerging with creative flows for serving the public without the high risk of spreading the virus. Put your innovative business concepts into play, and connect with us to get the funding you need to start your newest venture!

Financial restraints have been a complaint for many of the dreamers, limiting themselves to their immediate funds. There is an alternative. If you have the dreams and decent credit, Small Business Loans and No Doc Loans are available to you. Our goal is to provide you with the knowledge you need and the resources available to make your dream a reality. Give us a call – we have the education and the perspective to help you obtain the loans you need for your small business. Visit our website or give us a call to find out what financial backing is available to make your business soar!

Unsecured Finances has over 10 years in the consulting business! We specialized in educating and assisting clients on acquiring Unsecured Business Loans and Start-Up Business Specialty Loans including; Unsecured No Documentation (No-Doc Stated Income) Loans, Unsecured Business Loans, and Unsecured Start-Up Business Loans and Lines of Credit from $10,000 to $500,000 without Assets.

Apply on our website to find out if you qualify, or call today for a free consultation: 1-888-294-2584

Over Your Overhead? Simple Ways to Cut Costs


Many business owners have been affected since the pandemic began and although we are making strides and slowly gaining momentum in the business world, it’s still valuable to exercise a little frugality. Are you looking for ways to hang on to those hard-earned dollars your startup is starting to make? Here are some cost-saving tips to reduce the expenses of running a small business.

Technology is key to financial efficiency, and these days there are many options for making technology do the heavy lifting for your business. Here are some a few examples of platforms and software that will benefit your business: 

  • Online meeting spaces like Zoom or Google save time and travel. 
  • Digital Payment systems like Zelle or Cashapp manage income from clients, as well as paying contractors. 
  • Cloud storage  systems like Google Suite retain documents and more, making them accessible and easy to share. 
  • Apps like Connecteam help with employee management and daily operations. 
  • Free open source platforms make shopping for software more budget friendly.

At the end of the day, technology reduces wasted paper, clutter, and devices in addition to expanding your reach.

Marketing

A strong social media presence can greatly reduce marketing costs while generating a constant stream of interest and new customers. A consistent directed strategy will get your message across clearly, and a wide network will gain you familiarity within your local community. Offer referral incentives to expand your base and price specials maintain engagement and customer loyalty.

Energy Saving Solutions

Look for ways to reduce utilities and production costs wherever possible. 

  • Turn off the lights and devices when not in use, invest in LED. 
  • Ditch the landline by switching to online phone services. 
  • Change your air filters and check for leaks. 
  • Ask your utility provider to conduct an audit to pinpoint any waste.

Keeping Equipment Costs Down

Buying refurbished equipment can save a ton of money in the short-term while your startup is still establishing reserve capital. You can get the expensive top of the line gear later down the line, and set that as a goal. For now use what’s most cost effective to ensure you make it to reach those goals. Try to sell unused equipment instead of just recycling, or make it a tax-deductible donation.

Benefits of Investing in Your Community

Buy goods and services locally when possible. Not only will this increase your network, which is invaluable, other small businesses are more likely to work with you to customize your needs and possibly negotiate a better deal. They may even be willing to trade for your services, which can again boost your name within the communityThis can also apply to hiring local freelancers.  Using freelancers is generally more cost efficient, especially if you may not need a permanent full-time hire for minor tasks.

Consistency is Key

All these efforts will help to keep your overhead costs lower, but they need to be evaluated regularly. Start by creating a working budget that you can work off of and modify over time. This will help keep a real-time perspective on what needs to be invested in, what can wait, and what can be cut. 

Thinking of Starting a New Business?

Now is the time! With our society ready to get back in action (safely), new business concepts are quickly emerging with creative flows for serving the public without the high risk of spreading the virus. Put your innovative business concepts into play, and connect with us to get the funding you need to start your newest venture!

Financial restraints have been a complaint for many of the dreamers, limiting themselves to their immediate funds. There is an alternative. If you have the dreams and decent credit, Small Business Loans and No Doc Loans are available to you. Our goal is to provide you with the knowledge you need and the resources available to make your dream a reality. Give us a call – we have the education and the perspective to help you obtain the loans you need for your small business. Visit our website or give us a call to find out what financial backing is available to make your business soar!

Unsecured Finances has over 10 years in the consulting business! We specialized in educating and assisting clients on acquiring Unsecured Business Loans and Start-Up Business Specialty Loans including; Unsecured No Documentation (No-Doc Stated Income) Loans, Unsecured Business Loans, and Unsecured Start-Up Business Loans and Lines of Credit from $10,000 to $500,000 without Assets.

Apply on our website to find out if you qualify, or call today for a free consultation: 1-888-294-2584