How To Raise Money to Start Business and Where to Get Money for Business

common questions for anyone who wants to start a business are: To raise money to start a business, and where to get money for your business

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to raise money to start business is not as difficult as what most people seem to think. This is especially true when you have an idea that can make you and your backers rich. In fact, there is more money available for new business ventures than there are good business ideas. We'll help you, where you can get money for business.

a very important role in the game to find out: Every time I want to raise money, your first move should be put together a proper prospectus

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This prospectus should include a resume of your background, your education, training, experience and any other personal qualities that could be counted as an asset to your potential success. It is also a good idea to list the various loans you've had in the past, they were for, and their history in paying them.

You'll have to explain in detail how the money that you want to use. If the existing business, you will have profit and loss record for at least the previous six months, a plan that shows how this additional money will produce greater profits. If the new job, you will need to show your proposed business plan, your marketing research and projected costs and projected income figures, with a summary for each year, at least three years.

It would be useful if you base your cost estimates high, and your income projections on minimal returns. This will allow you to "ride through" those extreme "ups and downs" inherent in any beginning business. You should also describe what makes your business unique --- how it differs form your competition and opportunities for expansion or secondary products.

This prospectus will have to state exactly what you're offering the investor in exchange for using their money. He will want to know the percentage of interest you're willing to pay, and whether monthly, quarterly or annually. Did you offer a certain percentage of profit? percentage of the transaction? seat on your board of directories?

investor uses his money to make more money. He wants to make as much as he can, regardless of whether short-or long-term deal. In order to attract him, interest him and make sure that "raise" the money you need, not only will you have to offer him a chance for big profits, but you'll have to spell out in detail, and further, back up the claims with proof from your marketing research .

venture investors are usually quite familiar with "high risk" proposals, but they all want to minimize that risk as much as possible. Therefore, your prospectus should include a list of your business and personal assets with documentation --- usually copies of tax returns for the last three years or more. May your potential investor does not know anything about you or your business, but if he wants to know, he can pick up your phone and know everything there is to know within 24 hours. Here, you always try to "con" a potential investor. Be honest with yourself. Lay all the facts on the table for him. In most cases, if you have a good idea, and you've done your homework properly, and "interested investor" will understand your position and offer more help than you dared to ask.

When your prospectus prepared, know how much money you want, exactly how it will be used, and how you plan to come back, you're ready to start looking for investors.

as simple as it seems, one of the easiest ways to raise money for advertising in newspapers or national publications containing the ads. Your ad should state the amount of money you want - always ask for more money than you have room for negotiations. Your ad should also state the type of business involved (to separate the curious from the truly interested), and the kind of return you're promising on the investment.

take a page from the party plan merchandisers. Setting up the party and invite your friends. Explain your business plan, profit potential, and how much you need. Give them each a copy of the prospectus and ask that they pledge thousand dollars as a non-participating partner in your business. Check with applicable tax regulations. You May be permitted up to 25 partners in Sub Chapter S enterprises, opening the door for everyone to gather a group of friends around you with something to offer them in exchange for their assistance in capitalizing his business.

It can also issue and sell up to $ 300,000 worth of shares in your company, without going through the Federal Trade Commission. You will need the help of a lawyer to do so, however, and of course a good tax accountant as well would not hurt.

It's always a good idea to have a lawyer and an accountant to help you make your business prospectus. As explained his plan to them, and seek their advice, by the way ask them if they'd mind letting you know, or steer your way any potential investors might happen to meet. Do the same with your banker. Give him a copy of the prospectus and ask him if he'd watch it over and offer any suggestions for improving it, and of course, let you know of any potential investor. In any case, it is always a good idea to let them know that you are willing to pay a "finder's fee" if it can be directed to the right investor.

Professional people like doctors and dentists are known to tend to join the work of the investment group. The next time you talk with your doctor or dentist, give him a prospectus and explain your plan. On May want to invest on their own or perhaps set up an appointment for you to talk with the manager of his investment group. Either way, you win because when you are looking for money, it is important that you get the word out to as many potential investors as possible.

Do not miss the possibility of Small Business Investment Companies in your area. Look them up in your telephone directory under "Investment Services." These companies exist solely for the purpose of lending money to businesses who feel they have a good chance of making money. In many cases, they trade their help for a small interest in your company.

Many states have Business Development Commission, whose objective is to assist in the establishment and growth of new enterprises. Not only do they offer favorable taxes and business expertise, most also offer money or facilities to a new business startup. Your Chamber is the place to check for more information about this idea.

Industrial banks are usually much more responsible for making business loans than regular banks, so be sure to check out these institutions in your area. Insurance companies are the primary sources of long term business capital, but each company is changing its policy with regard to the type of business will be taken into account. Check your local agent for the name and address of the contact person. It is also quite possible that the directories other companies to invest in their businesses. Look for a company that can benefit from your product or service. Also, be sure to check the public library for available foundation grants. This may 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, there is a money broker or Finder. These are people who take your prospectus and circulate with various known lenders or investors. They always require up-front or retainer fee, and there is no way they can guarantee to get a loan or money you want.

There are many very good money brokers, and there are some who are not so good. They all take a percentage of the gross amount that was finally purchased for your needs. It is important to make them fully, to learn about the successful loans or investment plans they're arranged, and what kind of investor contacts are --- it all before you put any front money or pay any retainer fees.

There are many ways to raise money --- from staging garage sales to sell their shares. Do not make the mistake of thinking that is the only place you can find the money you need is a bank or finance company.

to start thinking about the idea of ​​calling for investors to share in your business as silent partners. Think about the idea of obtaining financing for the primary business of financing for another business that will support the start-up, establishment and development of primary activity. Consider the feasibility of merging with a company that has already been organized, with amenities that are compatible or related to your needs. Give some thought to the possibility of getting the people supplying your production equipment to co-sign the loan you need for start-up capital.

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

Disregard the stories you hear of "tight money" and start making phone calls, talking with people, and making appointments to discuss their plans with people who have money to invest. There is more money than it now has ever been for new business investment. The problem is that most people start "business builders"do not know what to believe or which way to go for help. They tend to believe the story of "tight money"and they set aside their own plans for the business until such time when start-up money might be easier to find.

The truth is this: Now is the time to your move. Now is the time to act. person with a truly viable business plan, and determination to succeed will take advantage of every possible idea that can be imagined. And the ideas I've suggested here should serve as just some of the unlimited sources of monetary help available and waiting for you!

Now you should get an idea of how to raise money to start a business, to get money for business, and where can I get money for their work.