| ign="center"> | | | | you often do not need to repay. They are for that |
| In a time of global economic recovery the need for | | | | reason very competitive and require stringent criteria |
| entrepreneurs and new business start-ups has | | | | to be meet. These can include, location, size and |
| increased. Through entrepreneurship and hard work, | | | | industry sector of the business. Grants are mainly |
| new jobs and increased prosperity locally and | | | | offered by government institutions and a search |
| nationally, can be created. | | | | online can give you a quick overview of where to |
| Whatever the reason an entrepreneur may have to | | | | find them. |
| begin the rewarding journey of a business start up, | | | | Equity finance: |
| funding of the business will most likely become an | | | | Equity investors such as business angels and venture |
| issue that eventually should be addressed. There are | | | | capitalists can offer funding as well as key skills and |
| however multiple steps to be taken prior to raising | | | | expert advice. They invest in businesses in return for |
| funds for your business idea, where one of the most | | | | a share of the equity. The percentage of the |
| important steps is to write a comprehensive business | | | | business they want is correlated to the sum being |
| plan. This article is written for those who have | | | | sought as well as the current value of the business. |
| successfully completed those steps and will therefore | | | | Equity investors buy into your business and |
| give a short overview on different types of business | | | | management rather than lending you the money. You |
| funding. | | | | therefore have to be willing to give up a share of |
| Many different types of funding do exist if | | | | your business idea, in return you would nevertheless |
| self-funding is not an option and each of them is | | | | gain an experienced partnership that want to see the |
| designed to meet diverse requirements by the | | | | business succeed. Business Angels can be difficult to |
| recipient: | | | | find but several online networks exist where |
| The most obvious being loans and overdrafts | | | | entrepreneurs and investors can be introduced and |
| provided by financial institutions or perhaps through | | | | meet. |
| friends and families. Loans and overdrafts are suitable | | | | New and expanding businesses will usually be most |
| for smaller amounts being required and in particular | | | | successful in raising finance through a combination of |
| for seed capital. However as with any loan the lender | | | | financially sources. However make sure that your |
| will need a clear and structured plan of how the loan | | | | business requirements are meet in what ever route |
| can be repaid. | | | | you take. |
| Grants can provide you with a working capital that | | | | |