This post will include finance options an ideas to fund a nursing business.
Regardless of your reasons for wanting to start your own nursing business, one thing is for sure: you’re likely going to need to come up with funding to get it started. The amount of money you need will vary based on the type of business you want to start. For example, to become a nurse blogger, you can start for less than $100. You can start as a legal nurse consultant for nothing, but may want to spend money building on online brand, getting nurse business cards, and so on. But if you’re a nurse practitioner and want to start your own practice, it could be anywhere from $20-100,000 to open your doors. In this article, we’ll examine different funding sources to help you find the money you need to become the nurse business leader you always dreamed of. So how do you do that? How do you get the funding you need?
How to Finance Your Dream Nursing Business
Picking Up Extra Shifts
One of the best ways to start a nursing business is to start it as a nurse side hustle. This will allow you to build up your business slowly so that it can replace your income. But one if of the very first thing you’ll want to do is to pick up some extra shift to give yourself so seed money for anything in your business that has a material cost. You reduce your day job workload to normal after you’ve created this business starting fund. Then as your business grows, you can reduce the amount of time you spend at your day job until ultimately you can leave it all together.
Start a Side Hustle
There are many different businesses that you can enter into purely as a side hustle with the goal of funding another nursing business. Many nurses participate in network marketing programs during the free time to earn extra cash. This may work better than picking up a few shifts for them, as they can do it in the comfort of their own home. This may or may not have anything to do with nursing, but nurses do tend to have a professional edge in the network marketing programs that have a health focus.
Nursing Business Grants or Specialized Loans
If you simply cannot find a way to bootstrap your business, one of the best ways to finance is to look for nursing business grants or loans. Specifically, there are often grants for underserved areas, minorities, women, and other niches that many nursing businesses will meet. There are all sorts of small business loans available. The best place to start looking for them is at your business’s bank. Your bank probably has a financing system in place for small business loans. Another good place to search for loans and grants is the Small Business Administration website. If you decide to pursue grants and loans, keep these factors in mind:
1. Obviously, you will have to pay back any loan you get and sometimes the interest rates on those loans can be quite high. Only borrow what you are confident you will be able to pay back in the time allotted.
2. Grants, depending on who supplies the funds and how much you’re given, sometimes have to be declared as income come tax time. This can affect how much you have to pay in estimated income tax, payroll tax, etc. Make sure you understand what your tax obligations are for any grant you accept.
Taking on Investors
Investors–particularly if you can attract angel investors–can be your bread and butter. At the same time, figuring out the logistics of attracting investors, using their funds and keeping them happy can be complicated.
1. How will you pay your investors back? Do they want shares of your company? Can you simply repay them when you start turning a profit? Do they want a portion of the profits for a number of years? Money is only good money if the terms by which you get it are agreeable to you.
2. Do you want to allow your investors to have a say in how your business is run? This can be problematic in most businesses but even more so in the medical field. Figuring out how to balance patients’ needs vs. the demands of investors is difficult on a good day. If you are thinking of allowing your investors to have business input, consider going after investors who are doctors and medical professionals themselves so that they’ll understand how to balance profit and medicine.
Credit cards are one of my least favorite funding sources. To be clear, I’m not complete against credit cards. I have many and use them to earn rewards. My business uses a Southwest Credit Card almost exclusively and the points we earn pays for our annual trips to Disney World. However, the high interest rates and large monthly payments make them one of the worst financing methods for large purchases.
Also, despite what you may have been told, even business credit is tied to you personally, at least in the beginning. It will take a while for your business to build credit in its own name. To get that process started you can use your own personal credit rating to secure business credit in your practice’s name. , However, when you’re looking for business credit cards, it is important that you understand a few things:
1. The way you handle your business credit will affect your personal credit. If you default on a business credit card you will be personally responsible for that debt. The companies can come after your personal assets to recoup the debt.
2. You might not qualify for high credit limits in the beginning. It’s best to use your business credit cards for smaller things like office supplies and marketing materials than for larger things like big equipment or leasing a space.