Thu 21 Dec 2006
One of the most daunting tasks a prospective business owner faces is finding the funds to actually get started. I faced the same problems as all of you, and here's a short list of what helped me in my quest for the cash.
SBA- Source for a Business Loan
A great resource for financial help to start your own business, is the Small Business Association, or the SBA. This government organization provides loans for various business purposes. If you go to the website of the SBA (http://www.sba.gov), you can get a lot of information about the availability of loans.
Another institution to approach for funds to start a new business would be a bank. You should make inquiries and visit different banks and identify one that is prepared to finance your proposal on terms that are viable. A great place to start is the bank where you have your personal account, because you already have a relationship with them. If you are able to secure a bank loan, you must be prepared and committed to making timely repayments.
Find an Angel Investor to Help You
Another option to generate funds would be to find an angel investor. Angel investors are individuals who intend to invest their money in a business run by others, for financial returns. However, you should be aware that the investors are in fact, part owners. They may be able to compel you to make changes in your business that you may not consider wise or profitable.
Your near and dear ones are always your immediate support and are easily approachable. Your family and friends can become a source of funds for your business, since they are aware of your capabilities and sincerity about the potential business. Before you decide to use this option, be aware that many friendships are often lost over the issue of money, so be sure that you approach this in the same way that you would any other loan.
There are many ways to secure money for your business venture. The decision to approach the SBA, a bank, an angel investor, your family or friends is dependent ultimately on your assessment of your needs and the ability of the business to repay.