ANSWERS: 1
  • When you decide to start a small business, the world can seem like a big place. The first thing you need to do is secure startup capital so that you can get your business off the ground. There are various ways you can explore to finance your new small business. It takes a lot of hard work and determination to make a small business dream a reality.

    Your Own Resources

    The process of using your own personal funds and scaling back your personal spending to accommodate a small business has been called "boot-strapping." Basically you are pulling yourself up by your own bootstraps and using personal resources to finance your business. If you are starting your business part-time while still working full-time at another job, then look into taking on more hours for overtime pay. Cut back on house expenditures such as cable television and cellular phones. You can get the family on board by reminding them that it is only temporary, and once the business is going then you will bring the amenities back to the home.

    Partners

    If you lack the cash on your own to start up your business, then think about taking on partners to help finance it. When you take on partners be sure to negotiate with lawyers present and get the details of your agreements in writing. Partners do not need to represent a stifling business arrangement. It should always be remembered that it is your company, and your partners have invested in the company hoping for financial reimbursement. While you will be accountable to them, you should be allowed to run your business.

    Friends and Family

    If you have friends and family members with financial resources, it may be a good idea to consider them as a source of funding. In some cases it may be easier to appeal to friends and family, and in other cases it may be more intimidating. However you approach it, you should have the same legal agreement between yourself and your family that you would with any private investors. It is easier to get friends and family to invest in your business when they know what they can expect in return.

    Source:

    7 Great Ways to Finance a Start-up

    Raising Money to Get Started

    Financing a Small Business

    Resource:

    How to Raise Money for Your Business

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