Different Ways to Finance Your Small Business

1 minute, 8 seconds Read

When considering whether to start a business or not,one must analyze the cash requirement in setting up the business with a minimum of six months so as to estimate the needed cash and considering how important the cash will be made available at anytime.

There are so many finances one need to keep in mind,you must purchase license,pay for permits,professional service,buy furniture and equipment.To finance all this you need money,how do you now want to raise the money for your small business.

Equity financing,there are major ways in secure your equity.The common sources are from Friends,Family,Inheritances and Personal mortgage.

Find Partners investor: If you cannot finance your business through equity,then you may have to find partners that can put money into the venture,then a clear and concise agreement either to go liability or both claims the ownerships of the business which means the profit and loss need to bear.

Employee investment: This may sound strange but you can still get some dedicated employees as a partners to invest money especially if your business is incorporate. Employees may be willing to invest in your business because they understand the product or services,they trust the management because they will closely monitor them.However if the employee have a stake in the business it could prove difficult.


David Cohen

Rachel Cohen: Rachel is a sustainability consultant who blogs about corporate social responsibility and sustainable business practices.

Similar Posts