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Small Business Start Up Financing

The task of raising money for a business is not as difficult as most people seem to think. This is especially true when you have an idea that can make you and your backers rich. Actually, theres more money available for new business ventures than there are good small business start up financing ideas.

A very important rule of the game to learn:

This prospectus 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. Its also a good idea to list the various loans youve had in the past, what they were for, and your history in paying them off.

This will enable you to 'ride through' those extreme 'ups and downs' inherent in any beginning small business start up financing. You should also describe what makes your business unique---how it differs form your competition and the opportunities for expansion or secondary products.

This prospectus will have to state precisely what youre offering the investor in return for the use of his money or on an annual basis. Are you offering a certain percentage of the profits A percentage of the business A seat on your board of directories

An investor uses his money to make more money.In order to attract him, interest him, and persuade him to 'put up' the money you need, youll not only have to offer him an opportunity for big profits, but youll have to spell it out in detail, and further, back up your claims with proof from your marketing research.

Therefore, your prospectus should include a listing of your small business start up financing and personal assets with documentation---usually copies of your tax returns for the past three years or more. Your prospective

investor may not know anything about you or your business, but if he wants to know, he can pick up his telephone and know everything there is to know within 24 hours. The point here is, dont ever try to 'con' a potential investor. Be honest with him. Lay all the facts on the table for him.

Your ad should state the amount of money you want--always ask for more money than you have room for negotiating. Your ad should also state the type of business involved ( to separate the curious from the truly interested), and the kind of return youre promising on the investment.

Take a page from the party plan merchandisers. Set up a party and invite your friends over. Check with the current tax regulations. You may be allowed up to 25 partners in Sub Chapter S enterprises, opening the door for anyone to gather a group of friends around himself with something to offer them in return for their assistance in capitalizing his business.

Youll need the help of an attorney to do this, however, and of course a good tax accountant as well wouldnt hurt.

Do the same with your banker. let you know of any potential investors.

The next time you talk with your doctor or dentist, give him a prospectus and explain your plan.

These companies exist for the sole purpose of lending money to small business start up financing which they feel have a good chance of making money.

Not only do they offer favorable taxes and business expertise, most also offer money or facilities to help a new business get started. Your Chamber of Commerce is the place to check for further information of this idea.

Insurance companies are prime sources of long term business capital, but each company varies its policies regarding the type of business it will consider.Its also quite possible to get the directories of another company to invest in your business. Look for a company that can benefit from your product or service.These can be the final answer to all your money needs if your business is perceived to be related to the objectives and activities of the foundation.

Finally, theres the Money broker or Finder. These are the people who take your prospectus and circulate it with various known lenders or investors. They always require an up-front or retainer fee, and theres no way they can guarantee to get you the loan or the money you want.

There are many very good money brokers, and there are some that are not so good. They all take a percentage of the gross amount thats finally procured for your needs. The important thing is to check them out fully; all of this before you put up any front money or pay any retainer fees.

Think about the idea of obtaining financing for a primary business by arranging financing for another business that will support the start-up, establishment and developing of the primary business to your needs. you need for start-up capital.

Remember, there are thousands upon thousands of ways to obtain business start-up capital. This is truly the age of creative financing.

Theres more money now than theres ever been for a new business investment. The problem is that most beginning 'business builders' dont know what to believe or which way to turn for help. They tend to believe the stories of 'tight money,' and they set aside their plans for a business of their own until a time when start-up money might be easier to find.

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. and waiting for you!

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