Starting a Business: The Business Plan (Pt.4)
Now we're on to the next part of the financing aspect. Where to get the capital to fund your business in the start-up. There's several sources of capital that an entrepreneur has.
These include:
1. Personal Savings
2. Relatives
3. Former Employees
4. Banks
5. Finance Companies
6. Venture Capitalists
7. Government Agencies
As you can see, there are quite a few sources you can go after. Above 85% of people who start up businesses received their beginning money to start from their family and friends.
Another way you could receive some capital is by venture capitalists. These are people that will invest money to help start up a business for part ownership. Some can even ask for a big chunk of your profits, so be careful to evaluate the situation fully.
One government agency that helps small businesses start up is the Small Business Administration (SBA). These are small loans that the government give out to help new businesses. Of course you can always get loans from the banks as well.
But better yet! Have you ever thought about trying to get some start-up money from one of your suppliers? It could be in their best interest as well to help you start-up and pay back.
Loans = Money Borrowed + Interest
So you end up spending more than you actually borrowed.
Taking risks to try to become successful.
That's what being an entrepreneur is all about.
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