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The significant benefit of adopting this type of financial source is that you will control 100% of your business, being the only one deciding when to expand, invest, etc. There are a couple of actions you may have to take to guarantee your business’s success: 

  • Hire fewer people in the beginning:  Since money will not be abundant in the early stages of your company, try to dedicate yourself as much as possible. If you cannot do the work, think outside the box, find volunteers within your family, adopt online strategies, etc.


  • Maintain outside income: Starting a business is not an easy task, especially if you will be relying only on your capital. So, to guarantee your company’s safety and success, it is advisable to secure a steady income from a full-time/part time job until your business has generated enough money and becomes stable in the market.  

  • Pay your bills: This advice may seem silly, but a crucial one! You will be surprised by how fast you can spend money. So, make sure you always separate enough cash to pay your bills. This will help you maintain good credit, which may come in handy in the future.  

  • Obtain credit: Another good idea is to request your bank to increase your credit lines on your cards.


  • Other capital: You may use money from your life insurance, an interest-free loan from your retirement account, or obtain a home equity loan. Those are other ways to self-finance your company. 

Funding for Unforeseen Events

If 2020 taught us anything, it is that we cannot predict nor control the future. Hence, small business owners must prepare for any emergencies that they may encounter. There a couple of steps business owners can take to protect their companies:  


  • Emergency funds: An emergency fund could help your business continue to operate during any unforeseen events. You may have questions regarding how much you should keep. First, you should look over your business’ particulars and what it needs to stay afloat. Some businesses may encounter lawsuits or be responsible for complying with additional government regulations. So, you have to consider those instances when planning your emergency fund. At the very least, you must save accounts for total expenses, such as rent, operation costs, etc. For more details, you can consult with a business mentor. You may find one available in your region in the Small Business Resource Map.


  • Credit score: Your credit score may become crucial for your business if you may need to borrow money to get through difficult times. If your credit score is high, the interest rate will be lower.

  • Insurance: An effective way to protect your business is by having insurance. If your company gets in financial or legal troubles, the insurance may save you from losses. 

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