| Deciding to start your own business can be as | | | | they receive so many requests for money each |
| exciting as it can be expensive. Many folks who | | | | year. |
| decide to start a business often don't have enough | | | | 4. SBA Backed Loans: The Small Business |
| of the money they will need to get their dream off | | | | Administration is a federal office that guarantees |
| the ground. For those entrepreneurs who think that | | | | loans for small business loans. Banks prefer these |
| they may need some financial assistance before | | | | loans because the federal government agrees to |
| opening the doors, consider one of the following | | | | cover the cost of the loan should the business owner |
| financial assistance programs: | | | | fall into default. |
| 1. Friends and Loved Ones: Many people may seem | | | | 5. Angel Investors: Angel investors are similar to |
| hesitant to loan money to family or friends, but steps | | | | venture capitalists in that they invest in new start |
| can be taken to ease the worry. Don't try to wrap | | | | ups but they are different in the fact that angel |
| up the people you hold dear in a pyramid or other | | | | investors generally take on more responsibility by |
| get rich quick scheme. Friends and family will have | | | | offering guidance, advice, direction, and counseling to |
| more faith in you if you present them with a | | | | the business owners they are investing in. Angel |
| business plan, research, and some type of payment | | | | investors also become part owner in the company |
| agreement. You will also find that you will gain more | | | | they are investing in order to gain a return on their |
| support if you plan on starting a business in an | | | | investment. Angel investors tend to be business |
| industry that you have experience in. | | | | professionals who invest in companies as a side job |
| 2. Home Equity Lines of Credit: Taking out a loan | | | | or hobby so they will generally have more of a hand |
| against the appraised value of your home is a great | | | | in the day to day operations of a business than a |
| way to earn quick capital from a financial institution | | | | venture capitalist. |
| that you have a history with. The amount of this | | | | No matter where you decide to turn to in order to |
| kind of loan will vary based on the value of the home | | | | find capital to start your business, keep in mind that |
| and the amount owed on the original mortgage. | | | | few people like to throw money into the unknown. |
| 3. Venture Capitalists: These professional investors | | | | Before you ask any person to part with their hard |
| gather capital from various sources and help out new | | | | earned cash and invest in your dream, prepare for |
| and/or high risk businesses trying to get themselves | | | | them a business plan and show them that you know |
| off of the ground. These investors make money by | | | | what you are talking about. Show potential investors |
| becoming a partner in the business and selling off | | | | that you will not squander away their money by |
| their stake in the company a few years later. | | | | doing your homework, studying the market, and |
| Venture capitalists are difficult to attract because | | | | coming up with a plan for success. |