Self-employment
Top 5 ways to raise the cashYou've got a great idea and you're building a solid Business Plan, but how do you raise the money? ROGER PIERCE |
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 [ 2006-02-08 ] |
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Entrepreneur Catherine Maguire helps people to live healthier lives with her company, CLM Health Group.
Creativity counts when chasing cash. Often, new entrepreneurs piece together their start-up capital from several sources, either as debt or equity financing deals. Here are the five most common methods new entrepreneurs use to get their startup cash:
- Love Capital. Borrowing money from family or friends allows maximum flexibility in repayment.
- Employment Income. Having a full or part-time job separate from your business will pay your personal monthly expenses, thus reducing demands on your business to give it proper time to grow.
- Debt Financing. Borrowing money from a financial institution is doable -- providing you've got a decent credit rating and a solid Business Plan.
- Advance Sales. If you're a natural seller, you may be able to secure a sizeable advance order or deposit from your customers. Use the funds to get things rolling.
- Equity Financing. You may decide it's worth it to relinquish an ownership share in your new business for some moola. Be sure to draw up the proper legal documents with a lawyer, and try to keep majority control.
However you choose to raise the money, remember that your own investment of time and money counts. No one will buy into your business unless you do.
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