Wednesday, February 28, 2007

Entrepreneur wants to know options for finding startup funds.

QUESTION.
I would like to get advice on where I should consider going to get funds to start a business.

RESPONSE.
A good place to start would be YOUR bank account. The next best place would be borrowing against the equity in your personal residence. Then, of course, you could borrow funds from family and friends. Another alternative is to find business partners who have funds. One aspect of this is doing a "private placement." These methods of obtaining startup funds are the ways for new businesses to get started.

If you already have a going concern, then your business can hopefully obtain a line of credit from your bank. Your business can apply for a small business loan possibly backed by the SBA. Maybe there are government grants your business might qualify for? You could also seek funds from investors. Consider doing a private placement or getting a venture capital firm to consider investing in your business.

Consider taking a look at the following links. See

Financing Your Small Business & Angel Investors

Books on Venture Capital

Books of Government Grants

I hope my comments are helpful to you. Good luck! Regards, -Jeff

Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com

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