How can a budding entrepreneur arrange funds for his start-up?

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  1. Hungry-n-Foolish profile image59
    Hungry-n-Foolishposted 9 years ago

    How can a budding entrepreneur arrange funds for his start-up?

  2. jayman6018 profile image61
    jayman6018posted 9 years ago

    Cash flow is an never ending problem in business. One rule that I use that has worked for me is, all new ideas, or start ups have to pay for themselves with a bare minimum of investment. That helps me keep focused, cut costs, and stop chasing wild crazy ideas that lose money.

    If you have a really strong desire, and a good idea, lack of money will not stop you, in fact it can help you develop a more sound, profitable strategy.

  3. Rusty32 profile image38
    Rusty32posted 9 years ago


    If it was me, I would first get a mentor in the particular field you have, and run the idea by him/her to get their thoughts.  Take them out for lunch or something like that.

    If the mentor liked the idea, I would then put together a comprehensive business plan to show what I would be doing and how the business will make money.

    You would then have two real choices
    1) contact companies in your industry and see if they would be interested in funding the project, or undertaking a joint venture.  People in the industry will understand your ideas well and will know if they will work or not.  Also mention to them your mentor (if he is well known in the industry this will help)

    2) contact someone through "business angels" and see if they want to finacially support the project.

    The main parts they will want to know is will it work, and what percentage of money they will get.

    As an alternative you could also contact a bank, but if they don't know the business well they may not loan the money.


    Rusty O'Connor

  4. AdeleCosgroveBray profile image96
    AdeleCosgroveBrayposted 9 years ago

    Keep bank loans to an absolute minimum.  Instead, look around your home and sell things you don't need in order to raise cash.

  5. MickS profile image66
    MickSposted 9 years ago

    By seeing the new business financial advisor at his bank.

  6. Multiflavour profile image60
    Multiflavourposted 9 years ago

    First thing to do is a business plan and through the cash flow you know how much you need as start-up.

    The business plan is an essential documents for banks to assess your business idea and consider its feasibility.

    Besides this, I wouldn't suggest to get all the start-up funds as a loan. First you must have previous savings before starting your business. Use some of those.

    Then ask your parents and closest friend some of the needed funds. Most o the type these yield no interest.

    Only in case you need more ask a loan to a bank for the top up.


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