| If you're an entrepreneur or a small business person | | | | invest billions of dollars, but, and it's a huge but, only |
| one of the first tasks you have to accomplish is finding | | | | about 20% of the companies receiving venture capital |
| money for starting a business. There are several | | | | are start ups. The average investment by a venture |
| options depending on how much money you need. | | | | capital firm is in the millions, so it's not appropriate for |
| For a few thousand dollars, consider using your credit | | | | small businesses. Less than 1% of companies seeking |
| cards or obtaining a new credit card account to fund | | | | venture capital successfully obtain it, that's only about |
| the business. Use that card only for your business and | | | | 4000 companies per year. |
| you'll have a way to keep track of your expenses as | | | | You might consider alternative sources of financing |
| well. | | | | such as obtaining inventory through consignment, |
| Another avenue for finding money for starting a | | | | royalty financing, trade and barter or purchase order |
| business is to use your home equity loan, especially if | | | | financing. |
| you need, say $5,000 to $10,000. The interest rate on | | | | Many small businesses think that a grant from the |
| home equity loans are usually much lower than credit | | | | government will be their saving grace. Unfortunately |
| cards, but be careful. If you can't pay the money back | | | | there are very few government grants available for |
| or make the additional monthly payments you could | | | | businesses. Those that are awarded, are done on a |
| lose your home. | | | | competitive basis to established companies usually in |
| Look towards the heavens if you need an angel | | | | the medical or technical fields. |
| investor. Angel investors are private wealthy individuals | | | | However, grants or very low cost loans, are |
| who invest from $50,000 to $100,000. Most of the time | | | | sometimes available through cities and states for the |
| the company they invest in is high tech and looking at | | | | purposes of urban redevelopment, in blighted neighbor |
| a fast growth period. Angel investors will become | | | | hoods or to increase employment. |
| involved in the day-to-day management of your | | | | Money for starting a business can be found in a |
| company so keep that in mind. | | | | number of places and should be one of the first tasks |
| Venture capital receives a lot of press and does | | | | an entrepreneur should complete. |