When starting a business, one of the factors that you are most likely to worry about the most is how you are going to raise money to finance your business. A mini golf business requires a substantial amount of money to start and run it for the first 2 to three years and till you break even.
If there is one thing that virtually every entrepreneur can agree to about starting a business – it is that sourcing for finance is never easy. This is why it is important to have a business plan that will help you to convince potential investors about the viability of your proposal. In this article, we will be looking at some financing options for starting a mini golf business.
1) Family and Friends
For most entrepreneurs, this is usually the first step in sourcing for finance for their business ideas. Those conversations at the dinner table become really important, that is where you pitch your ideas to your family and hope they buy into it. But it is not always the best option especially when they are not financially buoyant enough to invest in your mini golf business. Because you may be asking them to commit their savings to your business proposal at the risk of losing it all. Sourcing for funds from family and friends had led to many broken relationships due to the failure of businesses of their loved ones that they have committed to. But if you are seeking a loan from family and friends, you need to have everything documented. Verbal agreements will not do. You need to structure a repayment plan or offer a percentage of your business in equity.
2) Bank Loan
Getting a loan from banks and financial institutions have been even more difficult. But there are still several banks that have set aside loans for businesses such as your mini golf business. Before talking that bank loan, ensure that you understand the terms and conditions so that you do not get any surprises as you run your mini golf business. Also, be sure that you can pay back the loan, as failure to do so could mean that you lose your business and everything that you have put in.
3) Credit Card
Funding your business this way can be very risky. If you fall behind on your payment schedule, your credit score can be seriously damaged. If this is the route that you have chosen to fund your business, ensure that you practice strict business practices and be determined to pay it back. If you use your credit card responsibly, it can get you out of emergencies in your mini golf business.
4) Crowdfunding
Hundreds of business Startups get funding for their projects through crowdfunding on sites like kickstarter.com and gofundme.com. it can be an exciting way to raise money for your mini golf business. This works by setting a goal for the amount of money you need to raise for your business over a period of time, let’s say, £40,000 over a period of 6 months. Your friends and family, social networks and strangers can then visit your profile on the site to pledge money. Some Startups offer something in return to those who pledge a certain amount, and this could be anything from free product samples and free services. This is not a long term funding, these crowdfunding sites are designed for asking for financial support for one-off ideas. Part of the reason why people choose to pledge money to Startups is that they are usually very creative in their approach. You might want to check out some tip mini-golf businesses for ideas you want your mini golf business to look like. A good place to start is Crazy Plonk Golf.
