Trident Press Wealth Creation Books

Saturday, October 21, 2006

Start up capital

Start up capital where to find???

Well wether it's $100 or $50,000 you need to start your business it can be very difficult to find. Good ideas require money. Unique ideas require a much larger capital base in most circumstances due to the unknown nature of a new market or idea.
The ongoing funding can be hard to access particularly if the idea is untested or hard to research.

There are many forms of start up capital from family and friends, banks and building societies, to shareholders and venture capitalists.
Business angels or venture capitalists have very strict requirements to be met before an idea will be investigated. They are sometimes wishing to invest other times to manage or both invest and manage or oversee the running of the business. Sometimes it is possible you may have to give up a large portion of shares typically the better the idea.
In almost all cases you need to have a top management team in place to expand and continue to grow the business.

Small start ups can be launched on a credit card as risky as this sounds it is very common. A personal loan is another good option certainly safer.

There are many varied ways to fund a business start up although i must say all are not without risk and you need to really believe in the idea and follow that up with a strong business plan to make a sucess of the business in order to return a profit to the shareholders or yourself as only then is it worthwhile.

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