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Tips On How To Raise Money For My Business

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By Author: Tanya Sharma
Total Articles: 27
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As a startup company, your business may faces many challenges, but none are as big as finding money to get everything off the ground. From renting office or production space to buying goods and hiring staff, everything you need to do to turn your idea into a viable business requires money and have a proper plan.

Crowd funding

There are a handful of really good crowd funding sites that will become very popular with inventors, entrepreneurs and the general public in the past two years. Each has its own pros and cons, so it’s best to fully investigate the details associated with each of the site.

Angel Investors

Angel investors stand out from other types of funding options because they are always on the lookout for the next or new business or idea to invest in. Many of the biggest tech companies today, including Google and Yahoo, were funded by angel investors at that time. At its most basic deal, taking money from an angel almost always requires you to give your investor some share of equity in your company to them.

Venture Capitalists

Similar to angel investors, venture capitalists have money to invest, which they want to invest in young, up-and-coming businesses which have a high potential for growth and monetary returns. Venture capitalists typically also look for a share of equity in exchange for their investment, but are also interested in having a voice in the direction of the company they have invested. VCs are looking to make money on their investments, and many feel the best way to do this is to have some control in how the company should be managed.

Personal Financing

Starting your own business is very risky thing, and in many cases this level of risk is what prevents traditional lenders from granting loans to entrepreneurs. This is made even more difficult if the startup owner hasn’t invested any of his or her own money in it. It’s very hard to get a third party to give you money for your idea or business if you haven’t ponied up your own money.

If you have savings or own your home and are willing to refinance or take out a second mortgage, then these are options you should definitely explore if you’re comfortable with the potentially bad consequences that may occur.

Purchase Order Financing

Many different factors can affect a business cash flow in and out of business, including seasonality and supply and demand. Some companies may find themselves unable to fulfil a large order due to a lack of funds to purchase the materials needed to produce the goods.

In these instances, purchase order financing might be the answer to your question. A purchase order financing organization will essentially extend an advance so the organization can purchase the materials it needs today and then collect back the money once the goods are sold.

Vendor Financing

If your ability to pay your bills is contingent on your ability to sell your product, you may benefit from negotiating longer payment terms with the of your vendors. Most vendors require payment on invoices within 30 days before implementing late fees and penalties are charged. You may be able to negotiate a longer term that gives you more cash to work with in the interim. This takes negotiation and may not be an option for all vendors you do business with. This is the tips to raise money for female business leaders.

Friends and Family Loans
Your friends and family have a vested, personal interest in watching you succeed and grow in your business. This might make them more willing to invest in your business, especially in the beginning. Taking money from friends and family, however, can be tricky, and all of the pros and cons should be scrutinized before deciding to use this method is used in how to raise money for my business.

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For the past 3 years I have been writing informative and high quality articles on women entrepreneurs. In the above article have covered topics such as tips to raise money for female business leaders , how to raise money for my business

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