Copyright © 2013 Irish Taylor
Here are some proposals you can make use of to raise plenty of capital for the enterprise you wish to build and eventually deal with:
- Use your personal savings. Check your bank account to see if you have funds you can use for financing your startup business costs. After all, this is one of the best ways for you to raise enough capital, without incurring a huge financial obligation.
However, you should remember that such move can compromise the savings you have initially set aside for your retirement. Nevertheless, if you’re fully convinced that your business venture will succeed and that you can easily recover the capital you have invested on it then, you may start inquiring about the things you need to prepare and the procedures you need to undertake to eventually launch your dream shop or store.
Still, if you think you need additional cash to supplement your working capital then, we advise you to consider applying for any of the two financing programs, discussed below.
- Request for funds from your close friends and relatives. If you have friends and immediate family members, who can help you out to raise sufficient working capital for your enterprise then, don’t hesitate to approach them. For sure, most of these individuals will be supportive enough to provide you the funds you need to realize your dream of becoming a business owner.
Just remember to draw up a written contract, which contains details of your credit transactions. This is very important for you to avoid having problems with your close friends and immediate family members, later on. After all, it can provide you and your enterprise protection against unreasonable payment demands from your lenders.
- Acquire traditional loans from banks and credit agencies, nearby. Always remember that a traditional startup business loan can provide you with sufficient cash, not only for covering the costs you will soon incur, but also for financing the operations of your enterprise, for the first few months.
Still, before approaching your target lender, be sure to come up with a sound and well-researched business plan, first. Keep in mind that without such plan, chances are your application for a traditional business loan will not be accepted nor processed.
- Look for angel investors. Equity financing normally involves forging partnerships with prospective investors. This way, you can acquire additional funds to support the profit-generating activities of your enterprise.
Hence, as early as today, you should scout for angel investors – individuals, investment groups, and venture capital firms, which can provide you with cash to raise, if not supplement, your working capital. To do this, you need to arrange appointments and business presentations with interested parties. This way, can present your business idea and you can convince them to accept your offer for business partnership.
A gentle reminder though. An investor might demand for a certain level of control over the management of your enterprise. In fact, conflicts and misunderstanding may soon arise, especially during decision-making activities. Hence, if you decide to accept angel investors, we advise you to put everything in writing.
Irish Taylor is a business loan consultant with StartupBusinessLoans.com and has been providing consumers and business owners with startup business financing since 1992. For years she has helped people with credit and loan problems especially pertaining to business start up, SBA loans and Unsecured loans.
