How do I fund my Laughter Business?
Many people start a business with no money, and then hope that they make some. The problem with this is that they are always focusing on, and worrying about, the money. This is the worst way to begin, as there are much better ways of doing it. It’s all about being financially solvent.
When starting out in a business, or entering a new financial year in your business, the best thing to do is to have the money available before you begin, and then be prepared to lose it all tomorrow. Running a business is risky and dangerous, but very rewarding if you get it right.
Being able to understand how money flows through your business, knowing how to forecast budgets, and then be able to adequately fund it, is a necessary skill to have. When choosing funding options, the thing to remember is that there are pros and cons for each.
Here are 5 ways to help you fund your business, along with some pros and cons for each one. NB These are based on real stories, from real businesses, that I’ve been involved with directly at indirectly over my time.
- Save the money before you need it. Pros. This develops a hard work, and a saving ethic, to ensure that you’re always cash flow positive. Cons. You may have to wait a while before you get what you want, and are tempted to spend it on other things in the meantime.
- Borrow the money from a bank or other financial institution. Pros. They will make sure that you know what you’re doing, and require a Business Plan, because they want their money back with minimum risk. Cons. They will want their money back in a timely manner, and with interest.
- Get an equity partner who is either active in your business or not. Pros. These people are more likely to take a risk than the folks in point 3, and you’re more likely to get the funds with less return commitments. Cons. They will often want a say in how the business is run, and so you lose the power to call the shots. They also usually want a share of the business in annual returns, as well as the sale of it.
- Pre-sell products and services. Pros. You have positive cash flow through presales, and are able to have better stock management. Cons. Selling something and then not delivering can evoke legal action, and the consequences for doing this are not pleasant. Especially if what you have done is in any way deemed to be illegal. I’m talking jail time here folks.
- Crowd funding. Pros. It’s easy to set up, and easy to manage. Cons. It makes you lazy, and less responsible, as you believe that money grows on trees. NB. I know that there are many folks who are fans of this new and popular method. I look forward to your angry emails ha ha ha
If you have any further questions regarding financing your business, then please feel free to email me at firstname.lastname@example.org at any time. Any recommendations for future topics are also appreciated.
Merv Neal is a Laughter Yoga Master Trainer and the CEO of Laughter Yoga Australia and New Zealand. He has successfully owned and operated his own businesses for more than 42 years. He has created a Laughter Yoga Business Training Program, as well as the Business Mentors and Coaches Program, to help others to take Laughter Yoga to commercial organizations, and/or to create a Laughter Yoga business of their own. More information can be found at http://www.laughteryogaaustralia.org or http://www.mervneal.com