| "Once,
when my mother mentioned an amount and I realized I didn't
understand, she had to explain, 'that's like three Mercedes.'
Then I understood." — Brooke Shields
I am sure non of us would want
to face that situation in our lives! Here is an insight into
Business Finance. From a small business to a full-fledged
company, there's something for everyone.
The perception that many small
business owners have is that financing means taking whatever
money you can get; the faster and easier you can get it, the
better. Unfortunately, this approach doesn't take into account
the fact that getting money for your business involves a variety
of considerations, financial and non financial, good and bad.
The first thing you need to do
is to identify relevant traits about your
business's financing profile and understand the various
financing sources that may be available to you, with an emphasis
on practical information on selecting the most suitable sources
of funding for your business.
Your business's financing profile explains how your position in
the business life cycle influences your financing options, how
you can estimate the amount of money you need, and how you can
find money in your own back yard by tapping friends, family, and
personal assets.
Most entrepreneurs consider
their resource pool to consist of whatever personal assets
they're willing to sink into the business, and whatever money
they might be able to get through a local bank loan. Yet, a
number of alternative (or additional) financing options may be
available to you.
Debt vs. equity shows how the two basic forms of
financing differ, and how you can combine them to your best
advantage.
Equity financing explains how your form of business
organization can be used to bankroll your business, and the
advantages and disadvantages of using venture capital,
"angels," sales of securities, franchising, and
employee stock ownership plans.
Debt financing discusses where and how to get a business
loan, and the types of loans available.
Government programs shows how the federal Small Business
Association can help to finance your small business, and
describes other government financing assistance.
Next
- Debt vs. Equity |
