Florida is Great for Businesses—Except When it Comes to Money
When it comes to starting a business, there are many things to consider. Will your products or services reach a large consumer base? Timing is also an element to consider, as sometimes it pays to wait a while longer. Other elements to consider are money and location. Some larger states, such as Florida and California, are great locations for starting a business. But what about money?
When it comes to location, Florida ranks high. It ranked sixth on WalletHub’s list of best places for startups. It trails Texas, Utah, Georgia, Montana and Oklahoma. It also ranked pretty high—at number three—for average growth. But money was a different story. Out of 50 states, Florida ranked near the bottom, at 46, when it comes to availability of financing.
This is important to understand because 20 percent of startups don’t make it past one year. Startups can fail for a variety of reasons, and money is no exception. It takes a lot of money to keep a business operable. A bad location, poor marketing strategies and a lack of need can also cause a business to fail.
While Florida may not rank well when it comes to funding a business, that isn’t stopping entrepreneurs from setting up shop in the Sunshine State. Florida has a very high density of startups. With nearly 21 million people living in Florida, there is no lack of consumers.
Alternative Financing Options
Unless you have saved up a significant amount of money on your own, you will likely need to procure funds from outside sources. There are many ways to help you get the money you need to live out your dream as a business owner. Consider the following options:
- Online lending. Getting the cash you need is as easy as a few clicks. You can get money through sites such as Lending Club or opt for a site that specializes in small business loans. It takes just an hour to apply and in many cases, you have access to the cash in just days.
- Angel investors. These individuals invest in companies in exchange for a 25 percent return on their investment. Angel investors have invested in popular companies such as Google.
- Venture capitalists. Venture capitalists often give large amounts of money—sometimes even millions of dollars—to companies that expect to have a high rate of growth, but are also high-risk. This is the premise behind the TV show “Shark Tank.”
- Invoice advances. Through this method, a service provider will give you money for invoices that have been already billed out. You then pay back the service provider once you receive money from the clients.
- Kickstarter and similar sites allow multiple investors to invest small amounts of money toward a business’ goal. The downside is that there are often fees involved.
Learn More About Business Startups
Starting your own business is an exciting proposition, but it can also be scary. There are risks involved—namely, money. Securing enough money to start your business and keep it running in the long-term is not an easy task.
There are numerous legal aspects involved in a startup, and it’s easy to make mistakes. Don’t let that happen to you. Count on the expertise of Orlando business startup lawyer B.F. Godfrey from Godfrey Legal. With more than three decades of experience, he can answer your question and help you plan for the future so you can keep your business running smoothly for many years. Call his office at (407) 890-0023 or fill out the online form to schedule a consultation.