Monday, September 14, 2009

six choices of business, using a small fund

One of the most burning question of how much new business for companies is to go ask for money. Fortunately, there are many answers to your questions are already companies. This is two, but the sword fell. But there's more to fund new projects, the options can be overwhelming. How do you take your business to be worrying about money, consider these six options:

1. Investment and savings. This project funds to start the search is the most logical place. If you own a business is serious about starting, then you must be willing to put some money where is your dream. In their efforts to raise funds to benefit your business if you are going to not beholden to anyone. The downside of course, if your business fails, you can wipe out the savings. So you are willing to liquidate the business and what percentage of your assets into consideration.

2. Family and friends. This is a good option for many business owners, but seriously it for the money before you start, ask your friends and family. It can cause a lot of nervous people around with whom to borrow from the money can be dangerous business. Even if they do not expect their money to tell you, the problem will always be room and the elephant.

3. 2nd mortgage. One option for raising money in the stock is to use your
Their own home. This, however, done a lot of risk. Disadvantage, regardless of whether or not the money to pay your business will succeed. However, tax benefits and financial contributions that will be able to source low interest rate.

4. Credit cards. This is a very dangerous decision, but one that many business owners a choice anyway. It's a lot of the credit line to get a huge charge to your credit card company is easy to be happy. Interest rates, but it is high, and you can end up debts of hundreds of thousands of dollars if your business fails.

5. Angel. These investments are starting to take ownership of private enterprise is a part of the exchange. Angels typically provide seed money and business generally is the first formal investors. Front, some investors are simply enough to recognize that you will leave. Others, however, that whatever you ask for help, or they make you happy, so it will be for your business investment in 1004 which I want to clarify the role of first place is expected to accept.

6. Venture Capital. Venture Capital, angel investors are essentially more aggressive and are much higher expectations. While angel investors, and check back often you will write by hand with a smile, a venture capitalist, and you are sure you hand them a huge pile of legal documents are written with. They are expected to enter a contract, and your business, they should be able to run it does not run the way you think they will probably be very unhappy. Instead of giving help and guidance, they are often required to give an ultimatum.

Seriously, if you use the Venture Capital is about to choose wisely. First off, do not offer you receive. If your business idea enough interest in a capitalist as well as to others interested in it is good.
Regardless of how your business money, spend money and spend wisely re-writing you can choose from depending on specific plans. Carefully consider your options for the control of the one you like best and keep the amount you can choose to get a job. Eventually have to borrow less, you will be more their own.

No comments:

Post a Comment