Getting money for your starting business
The most common question for anyone who wants to start a business are: how to rise money to start business and where to get money for my business?
So to raise money to start a business is not as difficult as most people seem to think. This is especially true when you have an idea that can make you and your backers rich. Actually, there’s more money available for new business ventures and directed business ideas. We will help you for where you can get money for business.
A very important goal of the game to learn: anytime you want to raise money, your first move should be to put together a proper prospectus.
This prospectus shows include a resume of your background, your education, training, experience and any other personal qualities that might be counted as an asset to your potential success. It’s also a good idea to list the various loans you have had in the past what they were for and your history in paying them off.
You’ll have to explain in detail how the money you want is going to be used. If it’s for an existing business, you will probably need a profit and loss record for at least the preceding six months.
You will also have to show your proposed business plan, your marketing research and projected costs as well as an anticipated income figures with summary for each year over at least a three-year period.
When you have your prospectus prepared, know how much money you want, exactly how it will be used, and how you intend to repay it, you’re ready to start looking for investors.
As simple as it seems, one of the easiest ways of raising money is a advertising in a newspaper or a national publication featuring such ads. Your ad shall state the amount of money you want always ask for more money than you have room for negotiation your ad also state the type of business involved and the kind of return you are promising on the investment.
You can also issue and sell up to $300,000 worth of stock in your company without going to the Federal Trade Commission. You’ll need their help of an attorney to do this, however and of course a good tax accountant as well wouldn’t hurt.
Many states have Business Development Commissions whose goal is to assist in the establishment and growth of new businesses. Not only do they offer favorable taxes and business expertise, most also offer money or facilities to help a new business get started. Your Chamber of Commerce is the place to check for further information of this idea.
Industrial banks are usually much more amenable to making business loans than regular banks, so be sure to check out these institutions in your area. insurance companies are prime sources of long term business capital, but each company varies its policies regarding the type of business it will consider. Check your local agent for the name and address of the person to contact. It’s also quite possible to get the directories of another company to invest in your business. Look for a company that can benefit from your product or service. Also, be sure to check at your public library for available foundation grants. These can be the final answer to all your money needs if your business is perceived to be related to the objectives and activities of the foundation.
Finally, there’s the Money broker or Finder. These are the people who take your prospectus and circulate it with various known lenders or investors. They always require an up-front or retainer fee, and there’s no way they can guarantee to get you the loan or the money you want.
There are many very good money brokers, and there are some that are not so good. They all take a percentage of the gross amount that’s finally procured for your needs. The important thing is to check them out fully; find out about the successful loans or investment plans they’re arranged, and what kind of investor contacts they have—all of this before you put up any front money or pay any retainer fees.
There are many ways to raise money—from staging garage sales to selling stocks. Don’t make the mistake of thinking that the only place you can find the money you need is through the bank or finance company.
Start thinking about the idea of inviting investors to share in your business as silent partners. Think about the idea of obtaining financing for a primary business by arranging financing for another business that will support the start-up, establishment and developing of the primary business. Consider the feasibility of merging with a company that’s already organized, and with facilities that are compatible or related to your needs. Give some thought to the possibilities of getting the people supplying your production equipment to co-sign the loan you need for start-up capital.
Remember, there are thousands upon thousands of ways to obtain business start-up capital. This is truly the age of creative financing.
Disregard the stories you hear of “tight money,” and start making phone calls, talking to people, and making appointments to discuss your plans with the people who have money invest. There’s more money now than there’s ever been for a new business investment. The problem is that most beginning “business builders” don’t know what to believe or which way to turn for help. They tend to believe the stories of “tight money,” and they set aside their plans for a business of their own until a time when start-up money might be easier to find.
Now is the time to make your move. Now is the time to act. the person with a truly viable business plan, and determination to succeed, will make use of every possible idea that can be imagined. And the ideas I’ve suggested here should serve as just a few of the unlimited sources of monetary help available and waiting for you!
Now you should get an idea for how to raise money to start business, how to get money for business, and where to get money for my business.