Getting Money for your New Business

Getting Money for your New Business
Many people look and dream of starting and running their own business. Some actually start while others only dream about it. The difference between the two can sometimes be the availability or otherwise of money or capital.

Many people simply do not start because there is no cash available. Learning therefore where to get the money and how to go about it is vitally important if the dream of running a profitable business is to materialise.

The process of raising the cash (known as “funding”) can be a very confusing and frustrating one. Even the smallest need for funding creates stress so being familiar with the procedures involved is invaluable to a new business owner.

Finding money is always difficult. Without capital, businesses, regardless of how promising they appear, simply do not get off the ground.

There are 5 things you’ll need to secure funding.

These are:

  1. A potentially profitable business with high growth.
  2. A strong management with the experience and confidence to make it all happen.
  3. A fully researched business idea or product.
  4. A good plan of how to reach profitability and how to repay any funding raised
  5. A well prepared and ‘not over the top’ business plan

Some of the reasons why business people seeking funding include:

  • For starting a new business.
  • For buying an existing business.
  • For buying a new or existing franchise.

So how do you raise the money you need?

There are 4 different ways.

  1. Self Funding – Money is raised from your private and family sources
  2. Debt Funding - Borrowing money from others
  3. Equity Funding – By sale of an interest in your business
  4. Other Funding – Other sources such as Trusts, Grants etc. 

© 2005 StartRunGrow


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