April 2026
Beginner
752 pages
20h 38m
English
Content preview from Starting a Business All-in-One For Dummies, 4th Edition
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Chapter 2
Finding the Funding
IN THIS CHAPTER
Devising a money plan
Using your own money first
Looking for an angel investor
Using venture capital
Considering nontraditional sources of funding
Two major fallacies about start-up funds make successful funding difficult. They are as follows:
- The more money I get, the better. I can use as much as I can get.
- My business plan numbers are just estimates — the investor will tell me what I need.
If you’re thinking along these lines, stop right now! First, why seek more investment money than you absolutely need? Every bit of capital invested in your business costs you some equity (ownership) in your company. Besides, having too much money may lead you to make poor decisions because you don’t think as carefully as you should about how you spend it.
Second, although it’s true that your business plan financials are estimates, they need to be good estimates based on solid research. Your investor may discount your estimate of rapid sales growth, ...
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