Start-Up Cash

A lot of us have “a great idea” we would love to act on, but we lack the capital to make the first step. So where can rookie entrepreneur find the startup cash he or she needs? Well there are hundreds of methods to generate a sufficient amount; the trick is generating money and maintaining 100% ownership of the business. With the economy in a fragile state, money seems to be harder and harder to come by. It seems the easiest way to produce capital is by inviting a venture capitalist, who is bound to demand certain percentage of the company. So where can you find the money without greedy demand of ownership?

1. Spend your own money. If you have the necessary funds, then start business yourself. This guarantees full ownership and zero debt. It also guaranteed motivation. An entrepreneur is certain to work hard when he or she knows it’s all his or her money on the line. The downside of this method is 100% of the risk will solely be on you; and depending on how much of your own money you invest, you may have to adjust to frugal living.

2. Apply for a grant. Most people don’t know this, but most states provide grants to entrepreneurs. This is a great program to take advantage of; one of the few times to receive significant amounts of money with hardly any ties.

3. Take out a loan. Although the economy is at a standstill and banks are hesitant to lend out money, it’s not impossible to get approved for one. If a business loan doesn’t work, try getting a loan against any assets you might possess. I know many individuals who have funded their small business by a cash-out refinance. The more collateral you have to put on the line, the better your chances are to receive a loan.

4. The last suggestion (and also the last of these options I would use) is credit cards. As long as you have used your credit cards wisely over the years, you should have a substantial limit on your credit card. Although credit cards usually have less than appealing interest rates, for most, it beats giving up ownership.

These are just four ways to come up with startup cash in a hurry. While some prefer to gather more investors to share the risk, others prefer to take on more risk in an effort to maintain full ownership of the company and its profits. There’s an option for everyone. Just remember: every option has its risks and its benefits.

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