Starting a New Business

So you want to start your own business? Well this is a task at hand. First you have to find your passion. In essence your business is your passion and your passion is your business. Starting a business takes planning and lots of it. You need to prepare a business plan. A business plan describes your competition, barriers, cash flows forecasts and the niche market you want to enter. Your best bet is to seek out a professional and while they can be expensive; you are better off on the long run. A professional business plan tells banks and lenders you are serious about your new venture. Research is most important as well, find out who is your competition is and study them. Find out what their strengths and weaknesses, how long have they been in business, how did they find their clientele? Do they have a loyal customer base? What is it they do that makes them successful or not. Now comes the fun part, raising money for your business.

Raising capital for you business is another huge task and if I may offer my advice is to use O.P.M. or in layman's terms “Other Peoples Money” Mortgaging your home or using your savings is not the best laid plans of mice and men, when funding your business.

If your venture does not require huge start up costs; then the bank is one of your best alternatives and in association with banks comes government loans and grants, who work in conjunction with banks and lenders. This is where your business plan comes into play as banks won't even consider you with out one. In some cases you may have to match the banks loan with your own money. For Example if you need $20,000.00 to start up your business, the bank will lend you $10,000.00 if you come up with the other $10,000.00 Ask your local banks about New Venture Loans programs and check out your government websites for loans and grants for starting a new venture.

You can also raise seed capital if you are looking for large funding.

There are many investors who are looking to invest in a great venture, but you have to present yourself and your idea in a clear, concise and professional manner. Know the answer to every possible question that can arise and be prepared to offer an answer to any of their objections they may find.

Don't and I mean don't overvalue your business when looking for funding. Venture capitalists will know by just by looking at your business plan what the value or what they assume the value of your business is. And by overvaluing you may or will not get what you are looking for.

The one drawback of raising money through venture capital is you will most likely have to give up controlling interest in your company. And while you might find this uncomfortable, remember that these people know how the make money and they are not going to let you have controlling interest in a venture they know will give them a good return on their dollar. And in turn you will come out way ahead in the long run, since you still own a large portion of the business, your dreams will be secure.

I give you all this advice from experience both in failed business and successful business. Learn from those who have the money and expertise and draw from it and you will be successful. Remember what Henry Ford said: “Whether you think you can or can't either way you are right”

May you have great success throughout the years and much happiness to go along with it.