AcharyaCenter.com - How To Guides, Tips and Resources

How to fund my new business?

0 like 0 dislike
184 views
in Business by Knighttime
How to fund my new business?

Please log in or register to reply to this post.

1 Comment

0 like 0 dislike
commented by Scorpeon
I’m often asked: what is the best way to finance a new business venture. This question is usually followed by "So, do you ever invest in new business ventures?"

The answers, respectively, are: 1. there is no "best" way to fund a new business; and 2. I do invest in new business ventures, but darn it I can’t today because I left my checkbook in my other suit.

The truth is there are a variety of ways to finance a new business and which way is best for you depends totally on your product, your market, your financial requirements, your burn rate, and most importantly, your personal and financial situation.

So with that in mind, here are a few of the most common ways to finance a new business without hitting old Tim up for a loan. Keep in mind that all methods have pros and cons and some (or most) may not work for your specific situation. No matter what financing method you choose thoroughly investigate the ups and downs and don’t jump in with both feet until you’re sure you’ll land on solid ground.

Savings and Investments

The first source you should consider tapping is your own savings and investments. I’m a huge fan of self-financing when it comes to business because it doesn’t make you responsible to others should the business fail. The bad thing is that it if things do go under, it will be your money that goes down with the ship. If you’re not willing to risk your own capital you certainly shouldn’t be willing to risk anyone else’s.

Friends and Family

After tapping their own savings and investments, many entrepreneurs turn to friends and family for help. This works well for some, but here’s the creed I live by: NEVER borrow money from anyone you have to eat Thanksgiving dinner with. Nothing causes tension in a family like lending money that is never paid back. And notice I say "lending money" rather than investing money. Venture capitalists invest money. Your relatives lend you money. They will expect it back someday even if they say they won’t. Remember, when a loved one invests in your business they are emotionally investing in you. It would be tough to tell mom and dad that their favorite son lost their life savings because his business went down the drain.

Credit Cards

I financed my first business on credit cards, which was an incredibly stupid thing to do given the fact that my business could have failed and left me with thousands of dollars in credit card debt that would have taken until the year 2099 to pay off. It worked out in the end for me, but if you decide to finance your business on plastic keep in mind that you will be paying extremely high interest rates on the money you’ve borrowed and unless you hit it big you will be paying for that money for many years to come.

Mortgage The Farm

Bank loans are next to impossible to get if you don’t have collateral and a track record of business success, which is why many entrepreneurs use the equity in their homes to finance their business after being turned down for a bank loan. While this makes more sense than building a business on a deck of credit cards, the financial risks are no less abundant. You must pay this money back whether your business succeeds or not, but it is a good source of low interest money to get you started and the interest may be tax deductible (check with your accountant to make sure).

Angel Investors

An angel investor is typically a wealthy individual who invests in start up ventures for a share of the ownership. Angel investors are usually the first formal investors in a business and provide the seed money to get the business up and running. Some angel investors will write you a check and leave you alone to run your business while others consider their investment a license to "help you" manage and make decisions. If you do accept angel money make sure the terms are clearly defined on both sides. Angel money always comes with strings. Make sure you know whether those strings come in the form of a bow or a noose before you accept an angel’s check.

Venture Capitalists

Venture capitalists are to angel investors as pit bulls are to Chihuahuas. That’s not to say all VC are big, bad dogs, but they do have powerful jaws that can chew up your business and spit it out if things don’t go their way. VC money doesn’t come with strings, it comes with chains and locks and lots of legal documents. VC always have the upper hand in any deal they invest in. That’s just how it works and that’s the price you pay to get access to VC money.

If your business gets to the level that VC money becomes a viable option, don’t jump at the first bone a VC dangles before your eyes. If one VC likes your idea, others will, too. Present to multiple VC and carefully consider each offer before you accept the check.

Just remember, no matter how you finance your business, use the money wisely. Don’t buy $1,500 plasma monitors and $1,000 Hermann Miller chairs.

Have a very clear plan of how the money will be used and how it will be paid back.

And remember this, the more you can shoestring the business, but more of the business you will own in the end.

Related posts

0 like 0 dislike
0 comments 258 views
10 Profitable Reasons To Add A Discussion Board Or Chat Room To Your Web Site

1. You'll be able to communicate with your visitors. They'll begin to trust you and get to know you on a more personal level. People will purchase products quicker from somebody they already know and trust. 2. People will revisit your web site to participate on your discussion board or chat room. ... by advertising your own products and services on your discussion board or chat room. You could also join other people's affiliate programs and make commissions advertising them.

image
in Business by BeautifulWolf
0 like 0 dislike
0 comments 492 views
Are You In The Right Profession?

All of us are busy working in a particular area to earn our living. Some of us are business persons and some are employed. Some are engineers, others doctors, carpenters and so on. We have painters, architects, firemen and all types of professionals. The question is - Why did you choose a particular profession? ... ? Please think about what I have said and rethink about your profession. You may find something else that may give you not only satisfaction but great success.

in Business by Madept
0 like 0 dislike
1 Comment 174 views
How to market my blog for free?

How to market my blog for free?

in Business by SilkPredator
0 like 0 dislike
0 comments 159 views
How to Start Your Own Small Business?

Opening your own business can be a real big gamble. If you do not do your research well, you will wind up like most small businesses, and that is out of business in less then 6 months. The most important thing to remember when opening up new business is the location. When doing your research for your new business you ... keep your costs low until you can really get a good idea of if you are making money or not. Once you are making money you can go out and hire people.

in Business by LovableStorm
0 like 0 dislike
0 comments 380 views
How To Have A Successful Charity Fund Raising Event

If you're thinking of starting a charity fund raising event, then you probably know all the most obvious questions that you should be asking yourself. These include why this non profit charity fund raising needs to exist or who will help run the fund raising event. You need to have a clear idea of the scope of what the ... raising, but it will be worth while when you accomplish your goal at the end. You need to know your goals if you are doing some charity fund raising.

image
in Finance by HarshThunder
0 like 0 dislike
0 comments 289 views
7 Ways To Advertise Your Business For Free

1. Free directories: Directories are perfect for customers that are searching for a particular topic. What's great about them is that you only have to post once and they are good for long periods of time. It saves a lot of your time when you don't have to resubmit your information every week or every month. ... Spam anyone. Only join groups with the same interests as yours. In other words, don't sign up for a recipe swapping group when you are advertising shaving cream.

image
in Business by KeyboardPie
0 like 0 dislike
0 comments 187 views
15 Ways To Start Your Internet Business Sales

1. Find a strategic business partner. Look for ones that have the same objective. You can trade leads, share marketing info, sell package deals, etc. 2. Create a free ebook directory on a specific topic at your web site. People will visit your web site to read the free ebooks and may see your product ad. 3. Brand ... . 15. Combine a product and service together in a package deal. It could increase your sales. If you're selling a book, offer an hour of consulting with it.

image
in Business by FlamboyantChomper
0 like 0 dislike
0 comments 236 views
7 Steps To Skyrocket Your Internet Business Profits

There are many ways to bring your income to the next level, and it all relies on just a little work that you can take anytime. So what do you need to take action on for your online business venture? Here are a few ways you can create a greater stream of income through your own Internet Marketing: 1. ... If you haven't included these steps in your online business venture, make sure you'll grab hold of it right now and execute them right away to multiply your revenues.

image
in Business by HistoryGuy
0 like 0 dislike
0 comments 129 views
10 Sure-Fire Ways To Kill Your Ebay Business

It's surprisingly easy to kill your eBay business, if you're not careful - sure, you can start over from scratch without it costing you anything, but do you really want to? Still, if you want your business to end up dead in the water, here are some simple ways to do it. Lie about an item: Say it works fine when it ... how about we explore what to do if you want to do the opposite, and make a success of it? The next email will give you ten steps to successful selling on eBay.

in Business by GreedySmile
0 like 0 dislike
0 comments 141 views
How To Transport Your New Kayak? Get A Car Rack

Right after you buy a kayak, you'll find you also need to buy a car rack to carry it. There are three types of car racks to choose among. People who are shopping for car racks notice right away that there are many to choose from. There are many ways to travel with your kayak on the roof of your vehicle. You want ... proper installation, and each system adjusts to the size of the kayak and works for all vehicles. So just choose one, put it on and hit the road and the water!

image
in Travel by GiftedWrecker
0 like 0 dislike
1 Comment 194 views
how to manage my skin allergies ?

how to manage my skin allergies ?

in Health by HairyFoal
0 like 0 dislike
1 Comment 188 views
How to improve my credit ratings?

How to improve my credit ratings?

in Finance by Titank
0 like 0 dislike
0 comments 128 views
How Can I Get My Partner To Change?

How much energy do you spend trying to get what you want from your partner? Think about it for a moment - how much of your thinking time is spent on what to say to your partner to get him or her to be the way you want him or her to be? Many of us spend a lot of time thinking about how to get ... When you stop your end of the power struggle and start to take care of yourself, as well as open to learning with your partner, the possibility opens for great change to occur.

in Family by Prepatriarch
0 like 0 dislike
0 comments 612 views
7 Step: How To Create And Publish Your Own E-Book

In this simple article, I will show you step-by-step how to create your own e-book. Step 1: Open your HTML editor (Dreamweaver, FrontPage or etc); if you do not have one, go to search engine and type, "free online editor WYSIWYG". Step 2: Type your message or idea into your HTML editor or copy and ... /createpdf.adobe.com and follow the instruction on how to compile your text into PDF file. After you successfully create your PDF file, follow step 5, 6, 7. Good Luck.

image
in Business by BrownPriest
0 like 0 dislike
0 comments 946 views
How To Unleash All Your Leadership Potential

There is a steady flow of information in the form of books, articles, white papers and training all in the context of [ "what is leadership" or "how to develop a leader"]?. In this issue, I will avoid those two questions and write about two others that I believe might be on the minds of a lot you readers and they are: ... Heart of A Leader" had to say about good leaders; "If you want to know why your people are not performing well, step up to the mirror and take a peek."

image
in Business by VirtualAssassin
0 like 0 dislike
0 comments 174 views
How to earn money online

Affiliate programs A lot of companies on the web allow you to sell their products and get a commission on the sale. They take care of the product and you take care of getting clients for them. They usually give you a special link with your refferal code in it so you can refer clients. Investment programs You can invest your ... site. You can earn money for each or for each impression of the ads. Starting a scam site This is NOT the solution! Don't even think about it.

in Business by Octopixy
0 like 0 dislike
0 comments 526 views
Complaint Letters: How to Respond in 7 Simple Steps

Ask many small business owners what goes into providing great customer service and you have answers such as, being polite, serving promptly, keeping your promises etc. But in this hi-tech age, we tend to forget that the humble letter has just as an important role in ensuring good customer service. Yet how many times ... So, there you have it. Some useful tips on how to write a superb letter, which will further enforce your image of providing exceptional customer service.

in Business by GreedySmile
0 like 0 dislike
1 Comment 618 views
how to get a job in film special effects ?

Getting Your Dream Job in Film Special Effects? what can you tell me?

in Business by Knighthawk
0 like 0 dislike
0 comments 115 views
I want to blog. How to start blogging? any tips

I want to blog. How to start blogging? any tips?

in Business by PrisonWorm
0 like 0 dislike
1 Comment 157 views
how to bid successfully ?

how to bid successfully ?

in Business by LovableStorm
0 like 0 dislike
1 Comment 167 views
how to be successful with any affiliate program?

how to be successful with any affiliate program?

in Business by AmazingKitty
0 like 0 dislike
1 Comment 171 views
Should i get free traffic for my website or pay for it?

What the difference between free traffic and paid traffic?

in Business by Cybora
0 like 0 dislike
0 comments 436 views
Accept Credit Card In Your Business

Should you accept credit card in your business transactions? Many small companies or home-based businesses avoid doing so because of their concern over fees and expenses that may drain away potential profits. Yet the actual cost of implementing credit card payment processing equipment, along with associated monthly and ... your business to the next level of sophistication by applying for a merchant services account so you can accept credit card in your business payments.

image
in Business by BouncyOracle
0 like 0 dislike
0 comments 123 views
5 Fun Party Games For Direct Sales That Will Boost Your Business

If you are in direct sales, the money is all in the parties you do. You want your hostess and her guests to have as much fun as possible, but at the same time, you need to educate them on and interest them in your products. You may also want to plant the idea of one of them becoming a consultant. Party games ... spin on them. All of these can easily be adapted and modified to work for you and the particular direct sales company that you represent. Go out there and have fun!

image
in Business by Catnip
0 like 0 dislike
0 comments 193 views
5 Mistakes You Must Avoid When Starting A Home Based Internet Business

2 years ago I left my job as a sales manager to start a home based Internet business. I had already bought a lot of books promising substantial incomes within days or at least a month. Nothing could stop me now - I had several project up and running in no time. First mistake to avoid is rushing into a ... survive. Starting a home based Internet business is like a boxing match. Be patient - work hard and smart and you will become the champ of home-based Internet marketing.

image
in Business by HairyFoal
0 like 0 dislike
0 comments 188 views
Blogging For Business Owners

If you run a small company, you may find that the world of blogging for business owners is a world that you want to be a part of. Blogging is a great way to get the word out to consumers about your product or service, and it can even be useful for inspiring employee loyalty and helping you keep your workers ... will feature photographs or video, and other aspects of your blog, and then stick to it with the same kind of determination that you used when you built your company.

in Business by Titank
0 like 0 dislike
0 comments 150 views
Can You Afford What Rudeness Is Costing Your Business?

Have you ever thought about how much rudeness may be affecting your bottom line? What is the cost to your company when you or the people who represent you lack proper manners? Do you know how many clients are turned off by employees who would rather carry on a conversation with each other than with the person who came ... (c)2006, Lydia Ramsey. All rights reserved. Reprint rights granted so long as article and by-line are published intact and with all links made live.

in Business by FatKomodoDragon
0 like 0 dislike
0 comments 144 views
Build a strong business with strong customer relationships

Most businesses spent time attracting customers to a product or service, trying to win their trust and then ending the whole process with a sale. That tactic seems obvious to most people. What often is neglected is the post-sale follow up with customers, particularly when it comes to online businesses. We should look at the ... ever out-perform. Treat your customers like your own family. Go out of your way to communicate with them. If you neglect them, they will go elsewhere.

in Business by GreedyPig
0 like 0 dislike
0 comments 498 views
Are You A Business Opportunity Seeker?

If you are involved in any type of multi-level, network marketing program, home based business, or other type of direct sales program, then you are probably interested in building your business using business opportunity seekers. These are people who have expressed an interest in a home-based business, extra-income opportunity, ... of family, friends, and co-workers to connect with those people who are just waiting to be found. So, are you a business opportunity seeker?

in Business by Camella
0 like 0 dislike
0 comments 128 views
How Can I Find Time For Myself During My Busy Day?

Life is hectic. Face it. It seems like, if we're not actively doing something, then we're on our way to the next thing. There is laundry to do, dinner to prepare, work piling up on your desk and you're already late for your son's soccer practice. How in the world are you supposed to find time for yourself? ... some time for yourself, put it to good use. Take a hot bath, read a good book, or give yourself a facial. Relax before diving back into your hectic everyday life.

in Health by AmazingKitty
0 like 0 dislike
0 comments 107 views
7 Options To Consider When Taking Out A New Credit Card

How many times have you taken out a credit card based purely on its current interest rate or balance transfer option? You may be surprised to note there are at least 7 elements worthy of consideration when you take out a new credit card. To judge a new credit card on just one or two options could easily result ... best matches your circumstances. Don't just pick the card with the longest balance transfer period or lowest interest rate as it may cost more in the longer term.

image
in Finance by BunBunny
0 like 0 dislike
0 comments 169 views
3 Ways To Get Approved For A Business Credit Card

If you run your own business--whether it's a retail store, direct sales, hobby shop or freelance consulting--chances are you've thought about getting a business credit card. It's probably a good idea, since it makes it easy for you to separate your business expenses from your home expenses, a task that helps ... can take anywhere from thirty seconds to a month. To find business credit cards online, do an Internet search or check the websites of major credit card companies.

image
in Finance by Tomatoad
0 like 0 dislike
0 comments 147 views
5 Easy Ways to Increase Your Business Using a Toll-Free Number

Toll-free numbers allow customers to contact your business without them having to pay for their call. Studies have shown that consumers are more likely to call a business with a toll-free number than those who only have a long-distance number, and 90% of Americans say that they use toll-free numbers. By following ... number, time, date and duration of every call. This information cannot be blocked and is an excellent tool for generating leads which can lead to more sales.

in Technology by Knighttime
0 like 0 dislike
0 comments 48 views
A Simple Strategy to Increase Profits

In today's competitive business environment it is essential to find ways to reduce costs and increase revenues while keeping productivity and quality high. One of the best ways to achieve this is through hiring and retention of outstanding employees. Far too often hiring managers rush through the hiring process due to being ... leading edge. By doing so you will be in business for years to come with a happy, dedicated and productive team. And that will equal profits.

image
in Business by AwfulSoul
0 like 0 dislike
0 comments 608 views
5 Considerations for the Home Worker to Make Money Online

With a computer and high speed Internet access, the potential for the home worker to make money online is virtually limitless. When it comes to finding the right home based business opportunity, there are several things to consider. Here are the top five: 1. Are You a Salesperson? Some people have a natural ... participant, choose an opportunity that requires you to interact with other people. If you prefer to be hands-off, select a business that will basically run itself.

image
in Business by Tomatoad
0 like 0 dislike
0 comments 148 views
5 Proven Ways To Find Link Exchange Partners

If you're like most small business websites on the internet today, you use link exchanges to market your website. But sometimes finding websites to exchange links with can be a time consuming task. Here are a few proven methods for finding websites to exchange links with. 1: Search Engines Queries Using Google or ... . All 5 of these methods are proven, dependable ways to find link exchange partners. Use them and start gaining more free links to your website today!

image
in Business by VoyageHooper
0 like 0 dislike
0 comments 178 views
4 Tips To Build A Content Site With More Repeat Visitors

On the internet, content is known as "the king". People visits a site not for the flashy graphics nor the wonderful website designs, but because of the information they learn from the website. Having high quality content not just attract visitors, it also attracts search engines to visit your sites more and increase your ... button to publish them. And blogs are getting indexed fast and easily in most search engines! Content is king, and you can take benefit from it easily!

image
in Business by Wallaby
0 like 0 dislike
0 comments 188 views
14 Ways To Persuade Your Web Site Visitors To Give You Their Email Address

1. Ask visitors to subscribe to your e-zine. It's a good idea to also give them a freebie when they subscribe. 2. Have them sign-up to get access to download a free ebook. The subject of the ebook should be related to your target audience. 3. Give your visitors a free membership inside your member's ... their contact information to receive the free course. 14. Offer your visitors free software to download. Have them sign-up to get an access code to unlock the software.

image
in Business by GroundHurricane
0 like 0 dislike
0 comments 160 views
Why would I want to buy a website?

You buy a chunk of land, in the middle of no where, for very little money. A couple of decades later, that middle of no where is now in the middle of a developing suburb. What do you do now? You might think about selling it and retire with all them money you made. The same kinds of opportunities ... meant to be a starting place for people interested in buying websites and we are dedicated to providing you with the most useful resources to make your business a success story.

in Business by BouncyOracle
0 like 0 dislike
0 comments 131 views
A Guide To Choosing A University Course

University courses and degree programs take around four years of study to complete. Nevertheless, some students may need more time to complete the university course. It is also possible to shorten the university courses by studying in the intersession of spring and summer. An average student has to spend three hours of ... make an appointment with the liaison officer for a discussion. Take a tour of the universities and colleges to find out more about the courses available.

in Business by PrisonWorm
0 like 0 dislike
0 comments 120 views
10 Ways To Transition Yourself Into Retirement

Let's be completely honest. Everyone has their own dreams and expectations about retirement. Upon retirement, some folks plan to travel around the world while others simply plan to take excursions to their local beach. Whatever the retirement plan that you may have, being able to implement your goals takes a ... Follow our suggested ten steps and you'll not only improve your mental health but you'll also transition yourself into a happy and financially secure retirement.

in Business by FoolishJaguar
0 like 0 dislike
0 comments 174 views
7 Reasons To Search Online For Your Next Job

A job search can be hard and sometimes frustrating. In case you are considering changing your job you should consider using an online search. This will help you expand your horizons and your search for your next job can become world wide and not restricted to any one area. 1. If you are keen in continuing ... your strengths and presents in a comprehensive way your experience. The internet has changed the way people look for new jobs and job search has taken giant strides.

in Business by HuggingDuck
0 like 0 dislike
0 comments 124 views
A Critical Tip To Make An Outsourcing Project Successful

Understanding what you want to accomplish is critical to a successful outsourcing venture. Although there are many who claim to offer offshoring procurement services, the fact remains that only the business contemplating outsourcing can determine the what, who and when of any offshore service project. To this end, a ... project. By being armed with solid information, it's then possible to select the right outsource partner and make a good decision for the business.

in Business by Hawkward
0 like 0 dislike
0 comments 142 views
Beginners Guide To Blogging, Get Started Right!

A blog is basically an online journal wherein you can digitally pen down your thoughts, ideas, opinions and practically anything that you want people to read. Blogs come in different styles, formats, and settings, depending on the preference of the user. Many blogging sites, offer built in features such as hyperlink, straight ... is organized according to category. This way you would get exactly what you are after. Blogging is really for everyone. It is fun, simple and easy.

image
in Business by Madept
0 like 0 dislike
0 comments 110 views
Beginners Guide to Blogging

A blog is basically an online journal wherein you can digitally pen down your thoughts, ideas, opinions and practically anything that you want people to read. Blogs come in different styles, formats, and settings, depending on the preference of the user. Many blogging sites, offer built in features such as hyperlink, straight ... is organized according to category. This way you would get exactly what you are after. Blogging is really for everyone. It is fun, simple and easy.

in Business by Camella
0 like 0 dislike
0 comments 123 views
4 Key Points to Branding

Here are four things you should keep in mind as you build your company's brand: 1) Own the Significant Thing : Dole tried to be all things to all people spend your time focusing on a single clear message. Mercedes-Benz owns Engineering in the car industry because it's focused ... to be remembered when the time comes for a prospect to buy? You need to start building that positive perception today and do whatever is necessary to maintain it. Good luck.

in Business by CheeryGrin
0 like 0 dislike
0 comments 141 views
3 Things You Must Do Before You Submit To Article Directories

To all writers and non-writers out there, now is the time to start digging up those creative writing skills back. With modern communication technology comes the popularity of information-based marketing, which is one of the oldest and most effective techniques in getting targeted prospects to sites and converting them into buyers. ... narrow group of people. Learn the difference between these two and it will surely help you know what kinds of articles to write and to submit.

in Business by TrainedGuy
0 like 0 dislike
0 comments 111 views
3 Things To Do Prior To Submitting Articles

To all writers and non-writers out there, now is the time to start digging up those creative writing skills back. With modern communication technology comes the popularity of information-based marketing, which is one of the oldest and most effective techniques in getting targeted prospects to sites and converting them into buyers. ... narrow group of people. Learn the difference between these two and it will surely help you know what kinds of articles to write and to submit.

in Business by MammothMoth
0 like 0 dislike
1 Comment 818 views
What are the creative ways to find a job?

What are the creative ways to find a job?

in Business by MagicalCyborg
0 like 0 dislike
0 comments 946 views
6 Things to do if involved in a Motorcycle Accident

Motorcycle accidents have a reputation for being some of the deadliest. Motorcycles offer little protection to riders in the event of an accident; therefore the injuries are often severe requiring long recovery periods. Usually, motorcycle accidents are not the biker's fault. Due to the size difference between a motorcycle and ... and insurance companies may be reluctant to pay for an injury later on. 6. Contact a motorcycle accident injury lawyer as soon as possible.

in Business by MysteryWasp
Connect with us:
...