5 Ways of Getting Funding For Your Photography Business
Starting a photography business? Well, congratulations. There are different types of photography, and you...
Starting a photography business? Well, congratulations. There are different types of photography, and you need to identify a niche before actualizing your idea. It could be artistic, aura, animal, or black and white photography. The first step towards any business is a business plan. Actualizing an idea needs a plan.
Business plans will always raise the issue of funding. How do you plan to get finances to facilitate the growth of your startup? You'll want to save some money in advance for your business. Even your savings sometimes may not be enough for purchasing a high definition camera that gets the best shots. It may also not be adequate to take care of marketing and office space as well as hiring people.
There may be need to get additional funding. Below are some tips on where to get funding as well.
Families and friends
Before seeking external funding options, your families and friends are a great resource. If it means having a legal agreement on the payment options, make it official so that you let them know you plan on paying them back.
It can be tricky to sometimes draw the line between a personal and business relationship with your loved ones. However, drawing the line ensures that your relationship with them does not suffer.
Sell stuff you don't need
Just like any other business, a photography business will need funding depending on your projections. Is there stuff you no longer use? Do you have a car that is just a liability or an old camera you don't need anymore because you already have a new one?
This does not mean you sell your most precious assets. No, it means that we all have unwanted stuff that needs decluttering. Set a day and sort everything out and you'll be surprised at how much you could sell.
Get to e-commerce sites that facilitate the buying and selling of used items. Surprisingly, you could easily make even up to $7,000 or even more. The money gained will go into boosting your startup and help you cater for incurred expenses.
Consider freelance photography
Funding comes at some high costs sometimes. Before opening your business, you could take up some freelance photography gigs to help save up before you get a physical location and expand the business.
Set a timeline on when you need to open the business, know the exact amount you need for the startup and work for it. Freelancing could mean working extra hours which will be worth it especially if you almost hit your financial target.
Photography is a passion and art. Even when you open the business, working as a freelancer could also help the company grow as you'll have frequent money coming in before the business grows to break even and start bringing in profit.
When you've exhausted all the above financing options, you could look elsewhere. Financial institutions such as banks or peer to peer lending institutions can grant you loans.
If you choose to go down this route, you need a good credit history. Banks especially need you to have a proven credit history. They need evidence you can pay loans. Therefore, if you don't have a credit history, it could be a challenge getting approved for the loan. Also, in case you have a poor credit history that could also be a reason for not getting approved.
However, some companies offer credit builder loans. They help you rebuild your credit by taking out a loan which you can only access after you have fully paid for it. Check this review of Self Lender for more details on how such institutions work.
For most financial institutions, your credit rating is crucial as it helps them decide on whether to finance your business or not. Other companies will fund you even with a poor credit rating, but the interest will be too high.
Seek angel investors
Looking for people willing to invest your business is also another option of sourcing for funds. An angel investor is somebody who invests in your startup in exchange for ownership equity or convertible debt.
Most often, angel investors will invest in the entrepreneur rather than the viability of the business. These kinds of investors are not mainly there because of the possible returns your business could give them but more of the fact that they believe in your business.
Angel investors are usually well-established in their business ventures. According to Securities Exchange Commissions (SEC), for you to be an angel investor, you have to meet the minimum requirement of a net worth of $1 million and an annual income of $200,000.
Finances are one of the many determinants of the success or failure of the business. The above tips should get you started in your photography business. There are also other business dynamics you need to be considering for the business such as marketing and the business structure as well.
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