IN THIS CHAPTER
Getting started with little or no money
Selling others on your idea
Searching for alternative money sources
Avoiding start-up costs with an upfront investment in an existing business
One of the most important choices you make when you’re creating a company is how to fund your brave new endeavor. The amount of money you have available and where it comes from truly helps you begin defining the rules by which you must operate the business.
If you borrow $25,000 from a bank, for example, right away you know what’s at stake. Each month you have to come up with at least enough money to cover that loan payment or else you risk jeopardizing your personal credit record (if you’re a sole proprietorship and aren’t incorporated). On the other hand, if you borrow $5,000 from your in-laws, you’re potentially inviting additional decision-makers into your business because there’s no such thing as “silent” in-laws.
Whether you need $500 or $500,000 to get your business going, this chapter shows you various financing options and describes what ...