When some people open a business, there are times when they think that they have enough money to open, but they don't. This is because they have not thought their budget through enough.
They think that they have thought things through, but often times they will have budgeted for the price of rent, operations and staff, but they might not have included the equipment that they need to actually do the work.
If this has happened to you, then you will know that you have made a massive mistake and you will know what it is like to feel like the bottom has completely fallen out of your world.
Imagine if have spent your budget and then you realize that you don't have the tools to actually do the work and get paid for. You will have got the business halfway running and then you will have fallen at the last minute.
This is not a good way to start a business and you will be left with two options. Take the loss and give up now, or find a way to get the money to get the equipment and then start your business.
Most people will go with the latter because with the amount of money that they have already invested, they won't want to give up. Taking a loss now might mean that they can't make a little and it will be a massive dent to their pride.
Therefore, you will probably make the same choice as everyone else and start to look for ways to get extra money. It is going to be hard to find the money, but you do have a few options, so read ahead for some help with getting started.
1. Mortgage - You might already have a mortgage on the property that you have bought to operate in, but you can go back to the same broker and see if they have options for you to add more money on top of the mortgage that your already owe. This will mean an increase in your monthly payment, but you will be able to buy the equipment that you need and you should have bought in the first place. You might find that you have to wait a few weeks until you can change your mortgage, but it will be worth the wait because your worries will be over in the end.
2. Loan - You could go to another bank and ask for a separate loan to buy the equipment. If you have already got a mortgage and you haven't even opened your business yet, you might be too much of a risk for banks. They are operating in a climate where they are clawing themselves out of recession, so they might not want to offer you a loan. You do have to option of lending of the government because sometimes they have small business loans on offer for new business owners.
3. Lease - A good option is to lease the equipment that you need. This is where you basically pay to rent the equipment and when you don't need it anymore, you can just give it back and stop the rental fees. Another good thing about leasing is that the leasing company is usually responsible for any maintenance or repair fees. This is will save you money if the equipment breaks down. Some leasing companies will give you the option of leasing with the intention to sell, so you are renting the equipment but at the end of the contract, you can pay a reduced price to buy the equipment.
You can visit their website at http://www.gertmartens.ca
Article Source: http://EzineArticles.com/8341506
Awesome post.
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