How to Get Capital to Start Your Business

How to Get Capital to Start Your Business
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getting capital to start a businessYou’ve probably heard it said, you have to spend money to make money. This sentiment couldn’t be more true. Even the cheapest business ventures cost something, and if you have nothing, you need to start by figuring out how you are going to get capital to start your business.

 

Now, you can apply to be on Shark Tank, but if that doesn’t work, there are other things you can do to make an honest go of things.

 

Often times, people cite lack of money to invest as the reason they don’t make the leap from working a job to running a business. However, the task of raising money for a new business venture is not as difficult as most people think.

 

The first thing you will need is a business plan. A business plan serves two purposes. First, it will force you to focus your thoughts. You will need to fully vet your business idea and your options. Second, your business plan can be used to convince potentially investors that your business idea is viable and you are fully capable of following through on the business idea.

 

Your business plan should include a resume of your background, your education, training, experience and any other personal qualities that might be counted as an asset to your potential success. Once again, doing this will help convince you, as well as potential investors.

 

You will also need to figure out how much money you will need and what that money will be used for. Simply asking an investor to give you $20,000 will not fly. Any reasonable investor will want to know exactly what you plan to spend the money on. Get estimates for needed materials and services to fill in a potential budget.

 

If it’s a new business, you’ll have to show your proposed business plan, your marketing research and projected costs. It’ll be to your advantage to base your cost estimates high, and your income projections on the low end. Although you want to show the potential for profits, you do not want to over estimate your potential profits, in case things start out rockier than you anticipated.

 

You should also describe what makes your business unique – how it differs from your competition, and the opportunities for expansion getting capital to start your businessor secondary products. Even within the internet marketing business, the ones who are really successful have found ways to differentiate themselves from others.

 

This business plan will have to state precisely what you’re offering the investor in return for the use of his money. He’ll want to know the percentage of interest you’re willing to pay, and whether monthly, quarterly or on an annual basis.
Learn from home party plans; set up a party and invite your friends over. Explain your business plan, the profit potentials, and how much you need. Give them each a copy of your business plan and ask that they pledge a specific money amount to become a non-participating business partner.

 

Professional people such as doctors and dentists are known to have a tendency to join occupational investment groups. The next time you go to your doctor or dentist, give him your business plan and explain it to him. If he shows the slightest bit of interest, ask if you can schedule an appointment outside of the office to discuss it further.

 

Look into small business loans. Depending on the chosen structure of your business and your personal financial history, you may qualify for a small business loan. There are also small business grants available in many areas.

 

There are many ways to raise money – from hosting a garage sales to selling stocks. Don’t make the mistake of thinking that the only place you can find the money you need is through the bank or investor. Don’t be discouraged if you are unable to get a loan.

 

You can also launch a side venture with the sole purpose of funding your business idea. There was a woman, who wrote and published a book with the sole purpose of using the money to fund a business idea she had and really believed in. It took her two years to get together the money she needed, but she did it, and her business was successful.

 

The truth is this: Now is the time to make your move. Now is the time to act. The person with a truly viable business plan, and determination to succeed, will make use of every possible idea that can be imagined. Now is the time to start you business.

 

AS ALWAYS…..

1. PLEASE leave a comment below and let me know your thoughts.

 

2. PLEASE pass this on to any other home business entrepreneurs you know (Facebook friends, Twitter friends, etc.)  if you think it might help them.

 

To YOUR Success,

Devon Brown

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About Devon Brown

From over $40,000 in debt (and bankrupt at age 23, to now doing over $1-Milion in sales per year, Devon Brown (creator of RenegadeSuccess.com) enjoys teaching internet home business entrepreneurs the short-cuts he wishes he knew about when he first started. For free video advice that makes learning internet marketing FUN & SIMPLE, be sure to follow Devon on Facebook

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