Overcoming The Money Hurdles
Raising the money to start a business can be a very challenging and overwhelming task.
Over 10 million Americans think of starting a business each year yet only 30% of them actually do. If you have the idea and the business plan, here are some of the places where you can get the money:
Personal Savings
This is the primary source of investment for the majority of new businesses. Think about how much you can afford to invest without taking out so much that you don't have a backup plan in case your business fails.
Friends and Family
These investors are also known as "love money" or "blood money" - It's important to treat them as investors and to have a written agreement to confirm your mutual understanding. Even if it's an interest free loan, have it written down.
Banks and Credit Unions
Most entrepreneurs will turn to their banker to arrange startup financing. Make sure you are prepared! Have the detailed business plan and resume on hand, practice your pitch before going in, and look professional. Many loans are turned down because the entrepreneur didn't do enough homework.
Credit Cards
Credit cards offer quick and easy access to capital but watch out! High interest rates can quickly overwhelm your cash flow and an overdependence on credit cards can make it challenging to obtain further loans from banks or investors.
Outside Investors
Companies with high growth potential often need more capital than is available through traditional sources. These businesses are called "gazelles" and require professional investment from angel or venture capitalist firms.
Read more here.
Over 10 million Americans think of starting a business each year yet only 30% of them actually do. If you have the idea and the business plan, here are some of the places where you can get the money:
Personal Savings
This is the primary source of investment for the majority of new businesses. Think about how much you can afford to invest without taking out so much that you don't have a backup plan in case your business fails.
Friends and Family
These investors are also known as "love money" or "blood money" - It's important to treat them as investors and to have a written agreement to confirm your mutual understanding. Even if it's an interest free loan, have it written down.
Banks and Credit Unions
Most entrepreneurs will turn to their banker to arrange startup financing. Make sure you are prepared! Have the detailed business plan and resume on hand, practice your pitch before going in, and look professional. Many loans are turned down because the entrepreneur didn't do enough homework.
Credit Cards
Credit cards offer quick and easy access to capital but watch out! High interest rates can quickly overwhelm your cash flow and an overdependence on credit cards can make it challenging to obtain further loans from banks or investors.
Outside Investors
Companies with high growth potential often need more capital than is available through traditional sources. These businesses are called "gazelles" and require professional investment from angel or venture capitalist firms.
Read more here.
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For more information, visit www.EvanCarmichael.com. |
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