Startup Finance

there are many advantages in investing in shares including:

*you can get really rich!

It depends on the source, what their terms are, do they have the financial resources to back you when you really need to grow, is it going to be a short term investment or are they in for the long haul? These are just a few things you must have in writing before accepting any offer of capital. Also you will want to be in control of your own business not the venture capitalist.Alot will depend on what you are offering and how risky it is, your experience etc for them to even consider your needs.

The process of writing a business plan can be very overwhelming, that's why I hesitate to say that there is such a thing as a "simple" business plan. I would recommend writing a mini-plan, which is often referred to as an

What is fixed capital in real terms?

This fixed capital is money that the company possesses but does not have in cash. This can be tapped into by the sale of these fixed asset items but usually, fixed asset items are vital for the running of businesses.

Working capital

Working capital is completely different from fixed capital and it has a different relevance when looking at a business. Working capital is the moment on a balance sheet that is constantly moving. These are all short term investments and the money is said to be working in the way that it is generating more money and more capital to be put back into the business.

Present the VC with an exit strategy

The expectation of success in a short period of time

== == Sources for finding investors

Angel Investors

Venture Capital

Bank and Micro funds

Friends and Family

Government funding

Self-Financing

Business Incubators

International Funding

Community Development Financial Institutions

Finance companies

Private Loan Guarantees

Short-term financing

Public funding sources

Credit unions

Advance against future sales

Pre-Launch Funding

Royalty financing

Have you tried the bank yet? If you go to them with a detailed portfolio and show them that this business will make money, then they will most likely give you a small business loan. A start-up business is among the most difficult to get financed due to the lack of operating history. Therefore, it is in your best interest to try to self-finance the business for as long as possible, until you have established some type of record. The first step is to determine your start-up requirements by identifying all relative expenses that your business will incur during its start-up phase. Some of these expenditures will be one-time costs, such as a security deposit for rent. Other costs will be ongoing such as monthly utilities, insurance, etc. Once you have properly identified your "realistic" start-up costs, you can determine whether or not you have the ability to support the business on your own through the initial start-up period. If not, you do have options. Start by asking your friends and family if they would be interested in investing. Be careful. You don't want to cause any hard feelings or place a financial burden on anyone close to you. Your next option is to take a look at what you own (personal assets) that could be used as collateral (house, land, rentals, investments, etc.) for financing the business through a traditional bank. Most lenders and investors require a business plan, so be sure to have one available. Typically, bank financing is not available to start-ups unless fully collateralize by deposits/assets from the owner(s) of a business. Even then, the bank will be reluctant unless it has complete confidence in the principal and/or management team. If you are turned down by a traditional bank, you can then approach the Small Business Administration (SBA). If your start-up is capable of supporting a large and growing market, you might be able to win over an angel investor or a group of venture capitalists. This is a tough undertaking and cannot be approached by the lighthearted. At the seed stage, funding usually falls in the range of $50-100k. Networking is the best way to find an investor. Ask you accountant, lawyer and business associates for referrals. Personal recommendations are often the only way to get your foot in the door of an investor. You can also visit after-hours business networking events. Check with your local Chamber of Commerce. They are a great source for all business related information and might be able to point you in the direction of an angel or VC. The Internet is yet another option.

I fully agree and would like to add you can also try to find a business partner that has assets they can invest. You do not only get the money but a partner as well to help making it easier to take some of your business hurdles.

Venture investors are typically looking to invest in high growth companies that are competing in very large markets and have some sort of differentiated defensible technology and/or product Venture capitalist simply invest money in a company and take certain ownership in the company. The question the becomes, how much money do they invest and how much ownership do they take? The quick answer to these questions depends on what stage the company is at. Different venture firms have different strategies. 1. Early/Seed state These groups are typically investing in companies that are very early in their life. The company might have a technology or might just have an idea that they want to develop a business around. If you can have some sort of beta product to show the venture investors, it will help them understand what exactly it is you are trying to do. More times than not, investors investing at this stage are investing in companies that are "pre-revenue." Seed stage venture investors typically invest less than one million in a company. Early stage venture firms typically invest 1-5 million in the company's first round of capital raising. 2. Growth Stage These venture groups are looking to invest in companies that have figured out what their product and technology is and are hopefully gaining traction in the market they are competing in. Traction might mean, users or that the company has customers and is generating revenue. Growth Stage venture investors typically invest 5-15 million in companies. In most cases, they are not the first investor in the company. Many companies at this stage raised seed/early stage financing from other venture investors. When a venture group invests money in a company, they take ownerhsip. How much? The short answer is that it varies. Anytime someone invests in a company they are putting an implied valuation on the company. For example, if you are raising a early round of financing, a venture investor might invest 2 million and take 40 percent of the company. This means the "pre-money" valuation of your company was 3 million. After the investor puts in 2 million in capital, the effective valuation of the company is 5 million.

If you are asking what it takes to start a veterinary clinic, the answer is a great deal of money (usually in the form of a small business loan) and a very good business plan for acquiring the building, land, permits, equipment and staffing you will need to run a clinic.

Veterinary clinics face the same challenges as any small business, including cash flow, inexperienced management, unforeseen expenses and the challenge of building a client base.

The best place to start looking for a small business grant is the U.S. Small Business Administration. You should locate the nearest district office and set up an appointment to meet with their counselors.

Some examples of start up costs include:

Installing equipment

Acquiring premises

Renovating Premises

Initial stock

License agreements

The primary risk of venture capital investing is that the companies into which the capital is invested will fail, and the money will be lost. The risk of investing money as a Limited Partner into a venture capital fund is that the managers of the fund (the General Partners, or 'venture capitalists') will pick more losing companies to invest in than winning companies, and that over time the total return from the fund will be less than might have been received from alternative investments.

I'd like to start with "start up cost"
1) How big is the store front?
2) Is it a retail outlet?
3) is it in a good location?
4) what is your advertising costs you're willing to spend?
5) INSURANCE COST?
6) inventory and storage?
7) employee and staff costs IE( with holdings for soc. sec., unemployment ins,
Medicaid, employee taxes, workman's compensation, etc, )
These are all factors that come into play. I don't know what type of business you are planning to open, but in any business there are at least one or two of the above mentioned factors to consider.
Have you ever thought about an on-line business?
I have no idea what your age is, but I would like to ask you a question, if you could turn back the years, knowing what you know now, would you have gotten into EBay or Amazon? If your answer is yes, then we need to get together and talk. I won't take up anymore of your time, but if you are interested, feel free too contact me anytime.
Hope I've been of some help, and good wishes in your endeavor.
George Johnson
george.henry.johnson@gmail.com

Absolutely. And you don't need a loan or a grant to do it either. I teach 'like-minded' felons how to be their own boss and create their own paychecks.

This will depend on many factors, of course. Among the big questions: is this a new clothing line or a business that manufactures clothing? Is it both? There is a reality TV show that offers $100,000 to its winner to start a new clothing line. This amount is completely arbitrary. You may be able to get started with little or no investment. You should be able to develop a prototype of your clothing on your own, or with the help of a seamstress or tailor. Then you can take this prototype to local stores to sell them on it. When you have buyers, you can have the clothing made.

Depending, most make about $35,000 up to $65,123 a year, this is the average. Some make even more or less.

It depends on what type of business you want to go into. Some people will have only a Grade 10 education (or, in the early 1900s lucky to have an 8th Grade education.) Now we can take business courses and it's always best to get a good accountant (CGA) to do the taxes at the end of the year so you must keep up your bookkeeping skills and be sure you pay all taxes and also keep receipts of business transactions and also learn the skills of possibly becoming an employer and what the rmployees rights are. Many people with a lower education have become millionaires by trial and error. good connections and a whole lot of luck. I have also heard (my husband is in the yacht business) that many millionaires have lost millions to gain millions and some lost so much they had to start from scratch. Sometimes it's a good idea (gives you an edge) to have a close and trusted friend become a partner with you and to be sure your partnership is drawn-up in contract by a lawyer. Often a partner may die and the other partner is left holding the bag, or, in many cases the spouse of the deceased may want to sell that share of the business. Take business courses and learns the ins and outs of business. Be sure you pick a good business (eg: computer games, technical, computer work for different companies (in home business which makes for a low over-head) etc.) It sounds mind-boggling, but, if you love what you do you'll usually be quite surprised at how well you do. Study the market out in the business world and see what's hopping and what isn't. Remember to always keep some spare cash in a special account for emergencies and don't start your business too quickly. I live in Canada and two young women started selling Mukluks (they are leather with fur on the top and come up to just below the knee) and decided to dye some of the leather in beautiful pastel colors. They not only wore them wherever they went, but sold them at Kiosks (small stands in malls) and sold door-to-door. Before they knew it women were coming up to them on the street and ordering and they had a thriving business and so much so, they were racing around getting much more help to get their orders out. The lady who wrote the Harry Potter books is another great story. She lives in England and while married she loved to write these stories as a hobby and when her husband walked out on her and she was left destitute her best friend told her to send one of her written stories in to a publisher and the rest is history. Most of the successful people out there have a lot of help and aren't always the brains behind the success (they hire people to do this.)

An advantage could be that it helps kick start Small Businesses that don't earn much revenue and need more staff or branches before they can start earning enough revenue however, a disadvantage would be that it's quite a bit of a pay back. The disadvantages of the short term sources of finance is that they cannot be used to finance very big and major projects.

To start any business, you should begin with a business plan. Also: * Be very aware that vending operations, including pool table rental (and the gambling that sometimes occurs on the premises) and use are under the control of organized crime in the U.S.

* Plan carefully and if you get a loan, make sure the source is legit.

When starting a business, a plan is VERY important. The reason is, it is risky when starting a business. If you take a few days to brainstorm, think and write down everything from what you need to do, to your targets, to what to do in certain situations, you eliminate the chances of rushed decisions, that are not well thought out, that could effect the business negatively. If something happens, you can just pull out the plan, see what to do, predicted outcomes, and possibly what funding is available in some instances, you know it is a good choice because you have thought it out beforehand! Also in a business plan, you have your business rivals, you can use the state of your rivals when you started the business, to where you are now, all that is stated in the business plan.

Bottom line is, don't take the risk of starting a business without a business plan.

Let's start with the basic business license. Most cities and/or counties may require that if you are starting a business you will need to first acquire a business license. What is a business license? By definition a business license is a legal authorization in document form issued by municipal and/or state governments and required for business operations. Don't get this confused with DBA. So then what is a DBA?

DBA is an abbreviation for "doing business as." Certain jurisdictions may also use the terms fictitious business name, trade name or assumed name. DBA registration is necessary if your business operates under a name other than its legal name.

For a corporation, LLC, or other state registered entity, the legal name is the name on the filed articles. For all other business entities, the legal name is the personal name of the business owner or owners. Conducting business and opening a bank account under any name other than your legal business name is only possible after fulfilling your state's DBA filing requirement. And what if you are selling items? Do most states require a state seller's permit?

If you sell, lease personal property or sell taxable services at a retail or wholesale level, you are required to obtain a Seller's Permit. If you have more than one location where sales are made, a separate license is required for each location. You must obtain a State Employer Identification Number Also Called a State Tax Id EIN if you:

Pay wages to one or more employees

If your business is a corporation and you are an employee of the corporation (recommended so you can obtain all the tax free and deductible corporate fringe benefits)

if you are a sole owner and the sole employee of your business getting an EIN is not required as long as you report the financial results of your business on Form 1040, Schedule C. The IRS and the Social Security use your social security number to track self-employment tax. A federal tax identification number (also know as an employer identification number or EIN), is a number assigned solely to your business by the IRS. Your tax ID number is used to identify your business to several federal agencies responsible for the regulation of business.

Any business offering products or services that are taxed in any way must get a federal tax ID number. Here are some important resources to remember when filing for any of the above documents mentioned in this article. Just refer to the link below to get not only just in-depth information, but also excellent professional assistance. You won't be disappointed.

Business process outsourcing means subcontracting a certain business task like payroll or customer service support to a third party. This is often divided into back office outsourcing that deals with billing and purchasing, and front office outsourcing that deals with help desk or customer support.

okay i know it says two reasons but there are a number in which you can choose from

1-the individual may want to be his/her own boss.

2-to have a good income to support themselves or family

3-they can open an close any time they want....therefore not having to work over time

4-they can make their own decisions because they are their own boss