How To Fund Your Photo Booth Business

One of the biggest misconceptions about being a business owner, regardless of the industry, is that you finally just get to do the thing that you love! 

No more 9-5 office days or doing tasks that you hate. Just you and the thing that you’re passionate about. 

*insert laughs from business owners here* 😂

Here’s the thing: when you’re a business owner, you wear a lot of hats.

It’s not *just* about the product or service that you sell!

Instead it goes a little something like this:

• CEO
• Salesperson
• Marketer
• Accountant
• Bookkeeper
• Content Creator

The list goes on… 

In fact, so much goes into being a business owner that there’s even a quote out there from Shark Tank’s Lori Greiner that says, “entrepreneurs are the only people who will work 80 hours a week to avoid working 40 hours a week.”

And it’s true! But when you love what you do, it’s worth it.

I say all of that to ultimately say that your photo booth business is no different and when you’re just starting out, one of the things that you have to learn is how to fund the business. 

Because unlike online businesses, there’s more costs that you have to pay for upfront in order to get everything off the ground.

And unless you’ve been saving up to invest in what you need, there’s a high chance that you’ll need additional funding so that you can get all of the equipment that you need to successfully launch your photo booth business. 

(By the way, if you’re not sure what equipment you need, I talk about that in THIS blog post!)

In this blog specifically, I’m breaking down how you can fund your photo booth business with a small business loan. 

I personally know how confusing it can be when you’re first starting out and navigating this piece of the puzzle, so my hope is to help you understand your options and break down the process so you feel confident taking action!

How To Apply For and Receive a Small Business Loan

Did you know that there are 10 different types of business loans?! They really don’t make it easy on us do they? 😅

The most common type that I would encourage for photo booth owners and other small business owners are SBA loans – aka small business loans. 

This type of loan is most common for those looking to cover startup costs, which is almost always needed for photo booth businesses specifically. 

Generally speaking, the equipment that you need to launch your photo booth business can run anywhere from $2-10K depending on the type of equipment that you choose.

If you don’t have this in savings or simply don’t want to spend your hard earned money upfront, an SBA loan can be a great option! This type of financing is issued by a private lender and backed by the federal government.

To get started with the loan process, you’ll typically connect with a loan officer at your local bank, credit union or other lender of your choice to see what type of small business loan you qualify for. 

Again, they don’t make it easy on us – there are various types of SBA loans that you can receive based on the amount of funding that you need and what exactly it will be used for. But don’t worry, your lender will help you navigate this!

Like any loan, your credit score, income and other factors will determine what type of loan you can receive and how much money you can qualify for. 

Once this is determined and you’ve weighed the different options given to you, your application process can begin!

The application for an SBA loan typically requires:

• Basic information about your business
• Various financial statements
• Personal details as the business owner
• Information about your collateral – with many SBA loans, you’re often required to put up collateral, such as real estate, to secure your loan
• Personal Guarantee – this is an agreement that states you as the borrower are responsible for paying back the loan with personal assets if your business defaults

Once your application is approved, you’ll continue to work with your lender to finalize your loan, which involves your repayment terms, interest rates and other legalities before you can ultimately access your funds. 

After that, your loan will be ready for use!

Although SBA loans are a great tool for new business owners, you want to be mindful of how you use the funds and have a plan up front for paying it back in a timely manner.

The last thing you want is to find yourself in the midst of trying to build your business while also feeling the stress of being in debt. 

So, I encourage you to lay out all of the details line by line of what you intend to use your small business loan for and stick to that. 

And the moment you start rolling in revenue, have a plan to make consistent payments. When you do, you’ll be on your way to more profit in the future. 💸

If you have more questions about the financial side of your photo booth business, I’d love to answer them – send them our way and you just might be the source of our next blog topic idea!