Raising Capital For Your Small Business Start Up

You have your business idea, your business plan in tow, your ducks in a row, and you're ready to get your business off the ground except for one problem - you have no capital to start. Unless you were born into wealth and there have been at your disposal, then you're like most small business and need a helping hand.

How can you raise seed money? There are a few ways to go about it:

Small Business Loans

Many financial institutions provide some kind of smallBusiness loan program. In order to receive funding from a bank for your small business, you will need a sound business plan. You need to prove that your company will have enough money to generate the loan payments. Each bank, the requirements are different, but if you are able to articulate how you will succeed, have decent credit, and possibly a co-signer, you can save in a position to a small business bank loan.

SBA (Small Business Administration)

The SBA is a great resource thatinformed about the requirements, credit factors apply as for loans, etc. The website is a good starting point before you apply for a bank. The better prepared you are, the easier it is when you start the application.

Family & Friends

Many small businesses raise seed money in this way. Family and friends in general, you want to succeed and believe in your company. It is advisable to treat these relationships as real business relationships.Do you plan how to repay their loans, the time frame and at what interest rate.

Angel investors and venture capital firms

Private angel investors and venture capital firms working primarily in the same way. They invest in the equity of your company and expect a return in the form of an acquisition, IPO, or shares back to the future.

The key to any of the above methods is to have a well-written business plan. A good business plan will prove that you are serious aboutabout your company and that you show the way you plan on making it successful.

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