What are the Benefits and risk of a new business using multiple sources of funding?
As I see it, having multiple sources for working capital can be very beneficial. For example;
1. Your own savings (not borrowing)
2. Bank “Line of Credit” (with limits)
3. Family and friends provide loans
4. Investors (but they usually want an ownership interest)
5. Equipment leasing
6. Factoring (using invoices to accelerate cash flow)
7. Purchase Order funding (usually coordinated with factoring of A/R)
8. Commercial loans (liens of real property)
9. Advances against future sales
10 There may be others unique to specific businesses
Combining any of these can be useful but if abused (over extending what the revenue of the business can safely support in payments) could be a financial disaster and make recovery and or growth difficult and sometimes impossible. Be cautious and seek the help of your accountant or other professional advisers.
Finding sources of seed funding for my start-up business?
I am looking for a business Guru to help fund and plough through the local and national fund raising exercise for a business that has great potential. In return for this aid, I am initially willing to give away 5% percent of all profits for a period of 3 yrs and 10% thereafter, with 20% ownership share in the business after the 5th yr.
If there is such a person whom deems themselves willing to discuss a partnership with me on these terms,please enquire thus.
The idea is intricate, although simple, new but not revolutionary, difficult, however can be simplified.
Skills from most industries can be utilised, the main ingredients must be or include integrity, energy and tenasity, with a long term view of making good steady income.
No hard selling invovled and so no fly-by-night, or daylight robbery merchants need apply.
I’m sorry, I should have suggested that i have completed a detailed BP and drawn interest fromBanks and a Business angel, previously and I am now looking to thread my idea through an ethical and ecological Guru, the likes of which are hard to find, hence the slightly derogotary note at the end, it wasn’t meant to offend.
I do take on board the answers I’ve given thus far, thank you.
You should prepare a business plan and go see your bank manager
Or apply to BBC2′s show ‘Dragon’s Den’
Any advice or direction on how to find free/inexpensive help w/ funding and business plan for a start up?
Im a 29 yr old mother of two who is looking to start up her own business. I am looking for advice on where to get free/inexpensive help with finding funding sources and also resources on putting together a business plan. Any advice or direction would be greatly appreciated!
Absolutely. You need to contact your local Small Business Association (SBA). They offer free classes to help you learn how to write a business plan that you can take around to discuss with bankers when you are ready for a small business loan to help with your start up. They will tell you about all the different types of small business incorporation categories, so you will understand the difference between limited liability corporations (LLCs) and the more simple business structures. They will help you understand your responsibilities as a taxpayer. They may also introduce you to local business networking and help you find business incubation opportunities, such as inexpensive rent, group health insurance plans through consolidated small business groups, etc. It is a great resource, paid for through your taxes.
When you are ready to register your business, go to your state’s website and you will find all the information you need to file your paperwork through the secretary of state’s office.
Everything I have mentioned so far is free except for filing your business namem which is very inexpensive. Make sure you do a search so that you are not using a name already taken and copyrighted by another business entity.
One word of caution. PLEASE do not fall prey to those who tell you that they can help you find free government grants to start a business. These are scams.
And use your local research library to search for similar businesses in your areea, so you know how close the competition is, and how much they made over the preceding years. This is easy to do and it should be incorporated into your business plan.
Good luck to you. Working from home is a wonderful thing.
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