Starting and managing a small business is daunting enough, but trying to do this during the coronavirus (COVID-19) pandemic seems close to impossible with all the new regulations and economic downturns. Becoming familiar with some tips on starting a small business can help you avoid potential obstacles and pitfalls that can significantly slow you down. There are also resources available for small businesses during COVID-19 that might be able to help. However, if you have concerns about bankruptcy, talk to a Tennessee bankruptcy attorney for legal assistance.
Tips for Financing Your Business
Building up personal finances for your small business is not the easiest thing to invest in, but not completely impossible either. If you have a good idea and a vision for your company, then the rest will follow with hard work and smart financial decisions. Part of making smart financial decisions is knowing ways to finance your business.
One of the first steps is to figure out much money you will need to save up in total for your small business to function. Otherwise, you may find yourself running out of money fast. You will want to do your research on what expenses your business will need to pay for. This could mean money spent on renting a building, electric bills, product manufacturing costs, and office equipment. Once you have this information, you can start the process of financing your company.
There are several options available for financing your company and they include personal finances, investors, crowdfunding, small business loans, and small business administration investment programs. Personal finances are whatever money you have saved up in your bank account, but can also include money borrowed from loved ones and your 401k. benefits.
Seeking finances from investors involves seeking venture capital funds from an investor who believes in your business plan. Crowdfunding sources can be found online and the benefit is that you do not have to pay them back. Small business loans do need to be paid back and you will need to convince the lender to let you borrow money.
Starting a Small Business During COVID-19
COVID-19 has created a multitude of problems for business owners and people who want to start a small business due to the unpredictable nature of the virus and government regulations for businesses. People are losing jobs and money in the process.
However, there are COVID-19 government programs out there designed to help small business owners during COVID-19 and they include:
- SBA Express Bridge Loans
- Economic Injury Disaster Relief Loan Emergency Advance
- Paycheck Protection Program
- SBA Debt Relief
Bankruptcy Lawyers in Chattanooga, TN
Starting and running a small business during this hectic economic time is challenging. Consider seeking help from our lawyers in Chattanooga, Tennessee, and North Georgia if you have found yourself in a tough financial situation or at the brink of bankruptcy.
You can contact one of our Bankruptcy lawyers in Tennessee today at (423) 424-3116 for a free consultation or leave a comment on our contact page. Our Tennessee bankruptcy lawyers are located in Chattanooga, Kingsport, and Tullahoma.