Funding is often a big challenge for many startup companies. Getting the right source of funding plays a critical role in the success of your venture.
Proper financing will ensure that your business has constant cash flow to facilitate the daily operations of your business. Just like any other business, a commercial lawn care company requires both labor and equipment to accomplish most of its activities.
You also need to train your staff and purchase modern and effective equipment for your daily operations. As such, the first step before setting out is to find a reliable source of income that will sustain your company before it starts to generate profits.
1. Personal savings
Personal savings is one of the best ways of funding a business. It could be in the form of inheritance or personal savings accrued over a certain period of time. For example, if you are planning to start your lawn care company in the next two or three years, then the best thing to do is to set a specific target to raise the required amount of money to get you started.
You can only set a budget when you already have a business plan for your company. A business plan is like a roadmap that gives you a rough idea of how much you will need to get started. Through the business plan, you will be able to plan early and target a certain amount of money for your business.
2. Bank credit
Borrowing from banks and other financial institutions is another great way of financing your commercial lawn care company. They are always willing to lend you whatever amount you want as long as you will demonstrate your ability to repay the loan on time.
However, banks rarely give loans to businesses that are just getting started. They normally want proof of cash flow by looking at your bank statements. Besides, they will also look at other factors such as credit score and the size of your company.
The best time to borrow from a bank or any financial institution is when your company is profitable and has high prospects. This means you are probably looking for funds to expand your business.
3. Partnership with other commercial lawn mowers
A partnership is another great way of financing your commercial lawn care company. Sometimes getting enough funds to run major operations can be difficult, especially if you are operating as a sole proprietor. Joining forces with two or more individuals will help you pull resources together and finance your operations.
There are laws that govern partnership in the country. That means you will have everything in writing as far as the ownership rights are concerned. The partnership agreement will also stipulate how profits and losses will be shared.
4. Family and friends
This is also a common way of financing businesses around the world. If you have friends and family members who can sponsor or lend you money, why borrow from the bank? If for example, you have two or three wealthy family members, then approach them with your business idea and ask them for funds.
The good thing about this source of funding is that you will be charged little or no interest. This will help your commercial company to start and pick up quickly compared to borrowing from the bank.
5. Angel investors
Also known as equity investors, angel investors are wealthy individuals who offer capital to startups. They are usually interested in businesses that have high prospects. All you have to do is have a business plan and prepare a killer pitch about your commercial lawn care company.