Opening a Business Using Venture Capital Funds

Richard worked as a mechanic for one of the biggestsustain or keep it growing. While there are banks that
car manufacturers in Detroit. Given the employee's 20can help do this, it is easier to deal with private
years of experience, this person has moved fromindividuals since the interest rates are not that high
one section of the plant to another making someand these supporters become strategic partners.
people think that Richard can possibly assemble a carWho are the people to tap when it comes to
single-handedly.venture capital funding? Given Richard was engineer
Unfortunately, the poor sales performance in thewho worked on cars, it wasn't hard to talk to one of
past few months of the company has forcedthe former bosses and other people who also love
management to make a big sacrifice. This will involveautomobiles.
slashing 20,000 jobs from the workforce and RichardRichard first wrote a proposal with the location of
was on the list.the site, projected start up capital and sales that will
Rather than wait for the pink slip to come in, Richardhappen in the succeeding months and years. Since
opted for early retirement. With the money saved,these investors saw the potential of the business, it
this individual can start a business, which waswasn't long before the additional money needed was
something always inside this person's head.given.
The plan was to open a shop that restored oldAfter three months of renovating the old building, the
automobiles as well as serviced existing ones. Thoughshop was already operating and the customers
it was a fact that there are a lot of entrepreneursstarted to come in. Servicing cars was easy in fact,
that do this, the research Richard did showed thatpeople who worked at the plant would drop by and
there were not that many of these in thehave the automobiles done there. It took longer to
neighborhood.restore old cars since the parts were hard to find.
Richard had a fat check coming in, as part of theWithin a year, more than half of the amount that
retirement benefits but the startup capital was notwas borrowed from the partners was already paid.
enough so this person decided to get venture capitalAs long as the service given is maintained, it was
funding.possible for Richard to pay everyone off and
Venture capital funding is when a startup business orperhaps even expand the business.
an existing one needs funds from outside people to