Can Anyone Start Their Own Business?
Posted on 27th August 2021 at 17:53
Being your own boss is an attractive idea, especially if you think about working towards making your business idea turn into reality and you would like some additional income. However, there are many questions to ask when you might not be over 18, might not have the capital or the financial means and you might also have a mediocre credit score. Let’s answer all of these questions next.
Can you start a business if you are under 18 years old?
If you are wondering if you can start a business as a teenager, the very straightforward answer is yes, but with a few extra challenges or steps. While you cannot open it in your name, have a bank account independent of someone older or have a credit score if you are 16 let’s say, you can get around these problems by having a parent or a guardian help you set up all of the above. Ask around and people you know might be able to help.
Can you start a business with bad credit or no collateral?
Next you might be wondering if there are loans for people wanting to start a business but have a bad credit score for different reasons. Again, it is not impossible but it might be more challenging. It definitely depends on how bad your credit score is. There are a few banks and lenders that could offer you the financial support for your idea. Additionally, you might have the possibility of asking family, friends or professional connections to help and even form a collaboration or partnership with them.
Alternatives to bank loans for starting a business
The key thing you need to secure after having your idea figured out, calculating your potential costs and your business registered is investment. You might not have the financial resources because of the reasons mentioned above but there are ways to go around that and see your idea come to life. There are many ways to cut your costs when starting a business and you can secure funding from other sources apart from banks & loans. However, keep in mind you will need a business plan to be trustworthy and people to back up your idea. If you are unable to secure a bank loan due to your age, credit score, or current income, there might be other options available:
Government grants & loans. The government offers support for different industries and regions and you might be eligible to receive support. However, keep in mind that you might need to have a business plan ready, along with projections of profit and loss. Check out the government’s website for more information and the latest updates on the requirement of different types of financial help for new businesses available.
Family help. If you are lucky enough to have a supportive family or friends who would be interested in your business idea, you can present the business plan and your idea in a convincing way. You could offer them shares or part in the decision making process, which would be beneficial for you too as their experience might prove valuable.
Crowdfunding. The various websites online such as Kickstaerte and GoFundMe allow you to present your business idea and plan to strangers who might be interested in supporting it. They can donate or buy your product in advance or you can offer them shares of the company.
To conclude, there are ways to go around different difficulties you might encounter when starting your business in less than ideal circumstances but is nonetheless possible. Don’t be discouraged by your current situation, present your ideas in a cohesive and trustworthy manner and you might convince people to join you on this exciting journey.
Share this post: