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HOW TO START A BUSINESS : How to Fund a Start-Up BusinessHere are some resources for funding and starting a small business for business owners: Small Business Funding Source 1. Personal Savings Your first financial resource for starting a business will always be your personal stash. Exactly how much you should dig into your own pocket can depend on your life stage. A thirty-year-old single person who's built up a sizable savings is in a different situation than a forty-year-old parent who's the sole breadwinner for a family. There are, however, a few rules of thumb. One is to not use all of your savings. Keep a good chunk of money in your savings or money market account not only for personal needs but also as a reserve for unplanned expenses that might arise in the first year of your business. Another rule of thumb: don't be tempted by retirement savings. Small Business Funding Source 2. Family and Friends There's a reason why cash from family and friends is often called "love money": usually no one else will fund a newbie entrepreneur's dreams. Babson College has found that two-thirds of the average $65,000 needed to launch a business comes from the entrepreneur's savings, while the balance comes from informal investors— most typically, family members and friends. Make sure the people putting up the money are fully aware that they might lose it all, advises Babson professor William Bygrave. It's best if the money is a gift, but you can also structure the transaction as a loan or, more rarely, give away an ownership stake. Small Business Funding Source 3. Credit Cards It's tempting to use plastic to fund your start-up. And many entrepreneurs do, particularly when other options are so limited. Research from the SBA found that the number of small businesses carrying debt rose 25 percent in 2005 as a result of credit cards. But it's important to understand the risks before racking up too much credit card debt. A good word to keep in mind is easy— it's easy to get the money, but it's also easy to get in over your head. Small Business Funding Source 4. Home Equity Loans or Lines of Credit About 30 percent of small business owners tap into home equity to help finance their business, according to Discover Small Business Watch. In recent years, as the housing market has collapsed in many areas of the countries, securing a home equity loan or line of credit has become far more difficult. You'll need to make sure your credit history is strong, and you'll likely have to show that you or your spouse has a dependable source of income to repay the loan. Keep in mind, if the business doesn't succeed and you default on the loan, you could lose your home. Small Business Funding Source 5. Grants and Contests It's not easy to find free money for your business. But for a particularly creative or diligent entrepreneur, it's possible. Some state and local governments offer incentives to encourage business development in underserved areas or struggling industries. A number of business groups, such as the National Association for the Self-Employed, offer modest sums of grant money to small employers. Numerous companies that cater to small business customers— think Dell or UPS— routinely run contests that offer prizes of cash, equipment or services. source: - http://online.wsj.com/article/SB10001424052748703746604574463564272873216.html?mod=WSJ_hpp_sections_smallbusiness How to Start a Small BusinessHow DO you start a small business? Let's take into consideration you have thought out an angle to start a business that is going to revolutionize the industry. Now it's decision time. Are you willing to take a financial risk on the strength of your business idea?...Why Start a Business?Though to start your own business does mean that you'll be stepping away from the relative security of a regular paycheck, having the desire to own and start a new business...Starting a Home-Based BusinessStarting a home-based business can be a little complicated. The checklist below covers the most important sujects that you will need to consider starting your own business...Partnership for Business a Good Idea?Business partnerships have been an important part of entrepreneurship and startup success. The reasons are simple: complementary skill sets, shared equipment ...What it Takes to Start a BusinessWhat attributes suggest someone's a good candidate to start their own business? ...To Start a New Business, Appearance is EverythingThe success of starting a new business depends largely on the owner's ability to convince potential employees or customers that the business is operational,...Before You Start a BusinessIt's a terrific idea for aspiring entrepreneurs to work in the industry they want to start a business, whether they are college business majors...Choosing Your Business NameKeep in mind the availability of a domain name when choosing your business name. Also ask a friend or relative with a knack for words to help you brainstorm....Business Start-up ChecklistUse this small business start-up checklist make sure you don't miss any important steps. Taking a college business course would help you considerabley also....Other related Articles: Business Furniture SolutionsThere is a whole list of business furniture that must be kept in mind before buying what you need. Choose solutions that are best for your working environment and select every item carefully keeping in mind its purpose and usage....Best Businesses to Start in a Recession August 11, 2010Choosing to start a business in a recession can be risky if you don't know what you are doing. Do your research, information and do some planning. Some small businesses thrive during a difficult economy. These businesses are called counter-cyclical businesses...Getting Money to Start a Business July 1, 2010Getting money to start a business will be tough in a down economy, but not impossible. Depending on the type of business and the amount needed, you may need to acquire...What Home Business Should I Start - Service, Retail, or Product Based Feb 3, 2010Any good home business begins with a good idea. As you brainstorm, plan and prepare to start your new home-based business, you must first understand what kind of business...How to Run a Business from Home Jan 13, 2010Below are 9 helpful suggestions from other business savy entrepreneurs on how to run a business from home ...Start-Up a New Business Jan 7, 2010Over the past 15 years, small business has generated 64% of America's net new jobs, and more than half of American nonfarm GDP is created by small business. Why not start up a new business?...How to Fund a Start-Up Business Oct 13, 2009Here are some sources for funding a small-business for start-up business owners ...The Basics of Starting a Business Sept 3, 2009You’ve made the huge decision to start a business. Most efforts to start a business end in failure, but with the right business idea you can become successful. ...How to Start a Profitable Home Based Business August 17, 2009More and more people are investigating the possibilities of starting their own extra-income profitable home based business. Most of these part-time endeavors...5 Steps to Building a Successful Niche Business August 10, 2009Building a successful niche business with products and services can have the potential to generate big bucks if they capture the hearts, minds and wallets of a...10 Worst Business Partners For Your Start-Up July 3, 2009Business Partnerships can turn out to be a blessing or a curse. For every thriving partnership featured in Entrepreneur, ...How to Build a Family Business May 25, 2009More than 80% of businesses in America are considered family businesses, according to the Cox Family Enterprise Center. But as Professor ...Selecting Your Type of Business May 20, 2009Indeed starting a business and what type of business is one of the most challenging tasks anyone can undertake. One must balance ...Right time to start a business? March 29, 2009I am in my 20s and recently laid off. I have always been interested in starting a business, but with the state of the economy, I am a little unsure ...Start a Business in a Recession March 24, 2009Believe it or not but some entrepreneurs are actually looking to start a business in these economic times. ...How to Start a Start-upAndy McLoughlin spoke a little while ago about how he started a business, Huddle.net, from a simple business idea in a pub to a fully working new business... |
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