Author: BizSieve Team

Finding Money for Your New Business

If you are thinking about starting a new business, chances are you are looking for ways to finance your new venture; very few entrepreneurs have saved enough money to launch their businesses without outside funding. The number of choices available to entrepreneurs for business financing can be bewildering, but some of the most popular options are below:

Bank Loan

This is perhaps the most traditional route for entrepreneurs to obtain financing for their new businesses. Banks have a large source of funding available to them, even if they are less than eager to lend it out in this economic environment. However you will be hard-pressed to find a better interest rate on a business loan than from a bank. Of course, in order to get that prime interest rate, you will have to jump through a few hoops. Most banks have very strict lending standards, and they will want to see a detailed business plan that specifies your goals and profit projections. Although this is a time-consuming task, it is something you already should be doing.

Credit Cards

If you are unable to acquire a bank loan, it is always possible to finance your business with a credit card. The benefit of this approach is that it does not require approval, which greatly expedites the process. However you will pay for this speed with a very high interest rate on the borrowed money. This will put extra pressure on your business to become profitable quickly so that you can pay off the debt on your card. Generally speaking, credit cards should be considered just a short-term source of cash.

Family and Friends

Another way to finance your business may be to obtain money from family and friends through a personal loan or by selling shares of ownership in the business. Family and friends will tend to be far better partners than a bank, which may be quick to call in a loan if things go poorly at first. However tensions could easily arise if the new business eventually fails, which could lead to considerable tension within the family as everyone wonders where their money went. If you decide to go this route, it is very important that you clearly spell out the risks associated with a small business before asking for seed money.

Of course, there are many other options available to the budding entrepreneur, and you would be wise to investigate many of them. There is a lot of money available to finance new businesses, and if you have a good idea, there is a decent chance that you will be able to obtain some of that money for yourself.

Article provided by Touch Financial an online business finance service and solution company.

Must-Read Books on Starting Your Own Business

If you’re thinking of starting your own business, chances are you won’t be able to do it alone. If you’ve never attempted to start a business before, or if you’ve done so and failed, it’s a good approach to read and learn as much as possible on the subject. There is so much involved with owning a running a business. It’s an in-depth process and a serious undertaking. The more you know, the better prepared and more likely you’ll be to succeed in your ventures. Before you begin, here are some must-read books on starting your own business.

Start Your Own Business: The Only Start-Up Book You’ll Ever Need

By Rieva Lesonsky and the Staff of Entrepreneur Magazine

This is one of the most comprehensive books on starting your own business. The title is fairly accurate – it is one of the only books you truly need to read. Entrepreneur Magazine is an incredible resource for small business owners, so it’s only natural that the book created by its staff is, too. This book will walk you through everything you need to know about starting a business from day one and onward. It covers all the details, including investors, equipment, employees, daily operations, long-term plans, and so much more, along with helpful worksheets. It makes all the complicated details easy to understand for anyone who is interested in becoming a business owner.

Small Business for Dummies

By Eric Tyson

This book makes starting a small business accessible for even the most inexperienced businessperson. It is another comprehensive guide that focuses on giving you the practical tools you need. It will help you translate your dreams and ideas into a concrete plan that can succeed. One great aspect of this book is that it gives a lot of great financial information, including how to figure out what your business will cost, how to navigate financing, and how to track your cash flow. Other aspects include management, marketing, and customer loyalty.

The Accidental Entrepreneur: The 50 Things I Wish Someone Had Told Me About Starting a Business

By Susan Urquhart-Brown

Written by a successful entrepreneur, this book does exactly what it sets out to do – give you important insight into the business world. There are many things contained in this book that are often only learned through years of hard work and experience. The “secrets” laid out in the pages provide valuable insight into what it’s actually like to run a business, and what is truly most important to ensure it is successful.

Think and Grow Rich

By Napoleon Hill

This is a classic and best-selling book for a reason. It will truly help you to get in a successful mindset. If you have confidence in yourself and a positive attitude, you have the tools to make your business grow and thrive. This book will help you transform your thinking so you can accomplish what you desire. You’ll be rightly convinced that your business goals are achievable, and you’ll be motivated to work hard at them. It will give you a solid foundation to start with, worthy of a true business owner.

From the writing studios of Terry Ford, Terry is a freelancer with a passion for excellence.