The most common funding source used by entrepreneurs is personal funds – funds coming from friends, family, or personal savings – at both the startup and growth-stages.
Here are my four recommendations for those that are about to start a business with personal funds:
- Don’t run out of money. Make sure that in your business plan, you are considering all the internal and external factors that can impact your ability to start generating revenue.
- A digital strategy needs to become the essence of your business strategy. Use technology to improve your business performance and to generate enough business to keep your business moving forward.
- Paid yourself back as soon as possible. Don’t wait to pay yourself back. As soon as you start generating revenue, start putting money aside to cover your investment. You may need that money again in the future to scale up your business faster or to use it in a future project.
- Take action to build your business credit file. I used Dun & Bradstreet in my last project.