(Business coaching services) Start up Funding: Tips to Get Your Business Going
No commentsBy Dee Power
Start up funding is critical to the success of any business. While some companies can be started on a shoestring budget, most require some investment by the owners. There are several kinds of start up funding available.
The most common is the entrepreneur using their own savings to get their business going. Or using cash from their credit cards or from a home equity loan. The benefit is that the entrepreneur doesn’t have to worry about investors looking over their shoulder or disappointing friends and family who may have provided the funds. The disadvantage is that if the business fails, the entrepreneur’s home may be at risk or savings lost.
A small business loan is often used to purchase equipment, supplies, and inventory to get the company going. If the entrepreneur has a good credit history and a relationship with a bank that does business loans, the money can often be obtained with a simple application form. Unfortunately most banks require that unless the loan is personally guaranteed the business has to have been operating profitably for at least two years. Banks look at two factors: the risk in not getting the principal paid back and whether the company can generate enough funds to pay the monthly interest. Bankers are not interested in the growth potential of the company.
Venture capital is glamorous and gets lots of press. The reality is that it is difficult to obtain and very few start up businesses actually are successful in obtaining venture capital. Less than 20% of the venture capital invested is invested in early stage companies. The average venture capital funds invested per company per investment is nearly $10 million. Very few of the 600,000 businesses started in the United States and 400,000 in the United Kingdom each year qualify for venture capital. Less than 1% are appropriate for venture capital.
Angel investors or private individuals who invest in start ups, is another alternative. Angel investors usually invest in high tech companies that have the potential to quickly grow and return that investment at the end of a three to five year period with at least a ten fold return. In other words if the angel invests $100,000 in year one they expect to get $1,000,000 at the end of three years. Private investors sometimes work together in groups called Angel Networks. You can find Angel Networks in your area by talking to your local Small Business Development Center Office, local chamber of commerce, or searching through local newspapers, and of course through search engines.
Vendor financing and store credit are two more ways to find money for a start up company. Vendor financing is when the vendor you buy your supplies from gives you from 30 to 90 days to pay. Even if the vendor doesn’t offer payment terms you can ask for them and in return offer a 1% or 2% premium. You might be able to stretch out the payments for up to six months, with the vendor’s permission of course. Store credit is available for most businesses, even new ones by completing a store application. This can be helpful to buy office supplies and even computer systems.
Start up funding is available to start a business but it isn’t always easy to find.
Dee Power is the author of several nonfiction business books. Find out more about startup funding or visit the Capital-Connection website, the entrepreneurs resource for success. Additional financing resources
Earn Extra Income Right At Home
By Mal Keenan
Many Americans want to earn extra income; the problem is that many of them do not know how to do so. Fortunately, the advent of the internet and the pervasiveness of personal computers have made it easy for Americans to earn extra income from the comfort of their own homes.
But many skeptics wonder if it is possible to make money online. Specifically, they wonder if non-retail online avenues of revenue generation really work.
Online retail is an established form of income generation. Many dot.com giants were built on the concept of online retail. ebay and Amazon are considered the darlings of online retail. But you don’t have to be a corporate giant in order to make money online.
One way you can make money online is by selling unwanted items on ebay or Amazon. Old books, unwanted gifts, old toys and unwanted clothing are some of the items you can sell online. Selling unwanted items online is a great way to clean you house and make some money.
If you do not want to go through the hassle of selling physical products, you could become an affiliate partner and sell digital products online. These products are typically online e-books or software. Selling digital products requires a great deal of effort during initial start up, but once you set up your affiliate website, subsequent maintenance will require less effort.
By becoming an affiliate, you receive commissions on sales you make. There are many different types and varieties of affiliate products and the rate of commission can vary. But commissions typically range from 30% to 70%. Becoming an affiliate can be very exciting and rewarding.
However, if you want to earn extra income quickly you may want to participate in online surveys. There are online marketing research companies who are looking for consumers who are willing to participate in online surveys. In return, participants are paid for each survey they complete.
Unfortunately, it can be easy to deplete the amount of surveys available to you, hence reducing your income-generating opportunities. The amount of market research being done at any point of time is extremely finite, and the demand for new research may not replenish the old quickly enough. There are also many disingenuous companies who masquerade as online marketing research. Before you join one of these ‘programs’, it is important to conduct some research and find a legitimate company that has made proven payouts.
If you would like to earn extra income, you can consider some of these simple, yet effective ways of creating instant revenue. There are many ways you can use technology to make extra money. But technology not only allows you to earn extra income, it also allows you to do so in the comfort of your own home. But before you begin, it is always prudent to conduct the appropriate research. Try to consult a relevant guide or document if possible. So the next time you’re at home with nothing to do, switch on your computer and start making some extra money.
Click Here Now to download a free copy of Mal Keenan’s 30 Page Work at Home Business Success Report outlining his personal steps to a six figure online income.
For more home business tips and offers click below:
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Saturday, August 30th, 2008 at 11:55 am and is filed under business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
