STAPLES BizTIPs 4business: Top 5 ways to raise the cash

By Small Business Expert Roger Pierce, BizLaunch

You've got a great idea and you're building a solid business plan, but how do you raise the money?

Creativity counts when chasing cash. Often, new entrepreneurs piece together their start-up capital from several sources, either as debt or equity financing deals. Here are the five most common methods new entrepreneurs use to get their startup cash:

• Love Capital. Money from family or friends allows maximum flexibility in repayment.

• Employment Income. Having a full or part-time job separate from your business will pay your personal monthly expenses, thus reducing demands on your business to give it proper time to grow.

• Debt Financing. Borrowing money from a financial institution is doable -- providing you've got a decent credit rating and a solid Business Plan.

• Advance Sales. If you're a natural seller, you may be able to secure a sizeable advance order or deposit from your customers. Use the funds to get things rolling.

• Equity Financing. You may decide it's worth it to relinquish an ownership share in your new business for some moolah. Be sure to draw up the proper legal documents with a lawyer, and try to keep majority control.

However you choose to raise the dough, remember that your own investment of time and money counts. No one will buy into your business unless you do.

You can learn more about this and other how-to topics at a free STAPLES BizLaunch Webinar. To find one near you, please visit http://www.staples.ca/bizlaunch today.

 



ROGER PIERCE is passionate about helping entrepreneurs achieve success. Co-founder of Canada’s largest small business training company, BizLaunch.ca, he’s launched eleven small businesses of his own and personally experienced what he calls “the good, the bad and the ugly” sides of entrepreneurship.

BizLaunch advises thousands of Canadian startups through its popular how-to seminars and webinars delivered with partners such as STAPLES.