Business Venture

Finding the Start Up Money You Need For Your New Business

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You've always wanted to be your own boss and now you have the perfect idea for opening your own business and have the know how to make it work, but there's just one thing missing from the equation - the funds to do so. So, now what do you do? Scrap your vision and become more and more miserable as the days pass, or do what it takes to find the money you need to go into business for yourself?

Don't put your plans on hold any longer as every day that passes is another day wasted that you could be spending building and watching your dreams grow into reality. Here are just a few ideas to consider for finding the start up money you need for your own new business:

- Bank Loans: From the microloan that's usually less than one thousand dollars to a loan with five or six figures, bank loans take on many different shapes and forms. Equity loans involve taking out a second mortgage on your home, while inventory loans use the value of your company's inventory to secure the loan. Familiarize yourself with the terms of each of the many types of bank loans available before heading to the bank to apply for one.

- Business Credit Cards: While some people instantly cringe when they hear the words "credit cards," don't make the common mistake of thinking they will simply cause you to go into more debt, but rather, look at them as one of the ways of funding your start up business. Managed effectively, a credit card can often give one the ability to start a business and keep it running successfully, but managed poorly, and they're liable to cost you even more money over the long term and cause your business to be at risk before you've even established a name for yourself.

- Finding Investors: When the bank says "no" finding investors on your own to help fund your business is another option to consider. Depending on the type of business you are starting, there are plenty of people who already do have the funds that are willing to get in on the action. The most common type of investors include venture capitalists, private lenders and those who are known as "angel investors."

As the name suggests, a private lender is an entrepreneur who is not directly acting on the behalf of large company or other entity and takes the risk of investing in other's business ventures with the promise of receiving a percentage of the profits in return. Angel investors, or a group of them acting together known as an angel syndicate, are usually people operating on a more personal level but who are also looking for a lucrative investment to be a part of.

Venture capitalists generally are looking for a higher rate of return, usually more than twenty five percent, and operates on a professional level and will also expect to have a bigger hand in both the operational and financial side of your business.

1 Comments:

At January 18, 2020 at 3:47 PM , Blogger Unknown said...

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