It takes inventiveness, guts, determination and tremendous hard work to launch your own business. But, it won’t see the light of day without financial backing. Weigh your options carefully, preferably with advice from a trusted financial adviser and mentor well-experienced in the start-up game.
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DO IT YOURSELF
If your start-up is a digital one or run from home, and you have the money, this can seem like a no-brainer.
Pros: You own 100% of the business, and have full control over its direction and running – a great sense of accomplishment.
Cons: You shoulder the full responsibility. One of the most common reasons businesses fail is by running out of money. Without access to significant capital, you may not be able to grow your operation once it’s up, stunting its potential.
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“Funding is needed to meet the demands of the market, and wanting to fund growth without showcasing growth is very difficult,” says Standard Bank spokesperson Ross Linstrom. Lauren Deva, sales head for FNB Business Core Banking, adds: “If you choose to be a sole proprietor, it’s important to choose the right bank account. With the First Business Zero Account from FNB, for example, you pay no monthly account fee, and there are other value adds.”
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Bongiwe Gangeni, deputy chief executive of retail and business banking: Absa Group, says the institution believes in forming long-term relationships with its clients. “Each business client has access to a named banker to provide tailored advice and support to grow their business, backed by 24/7 virtual teams (via telephone) and digital channels (for self-help).”