Locating Sources of Funds
Once the amount of funds needed is known, you must find sources for those funds. The many sources from which to obtain funds to start and operate a business boil down to two: the owner and others. These two sources will be discussed in detail in Chapter 7, so only the
highlights are discussed here. before approaching a funding source, decide how much money
you and others will put into the business and how much should come from other sources.
For example, when looking for startup capital, consider all possibilities.
Dozens of resources exist to fund home-based entrepreneurial endeavors. If you have a good business idea, you should he able to find the money you need to make your dream come true.
Pursue all the resources available to you. and you will he on your way of greater home-based success. Using our Own Funds Some small business owners prefer to invest only their personal
finds and not borrow to start or operate a business. Others believe they should use little of their
own money and instead make as much profit as possible by using their interest in the business
as security when obtaining finds from others. Normally. owners control a company: they take
the risks of failure but also make the decisions. To maintain control, you must continue to invest
more personal funds than all the other investors combined. Moreover, you can maintain control
only so long as lenders do not become worried about the sal่ty of their money
For example. with your own capital. you can lend money to your home business, set
loan conditions. and then pay the loan off to yourself with interest. Another way you can
personally finance your home business is by keeping your current full—time job and work
ing your home business around it on a part-time basis.
Locating Sources of FundsOnce the amount of funds needed is known, you must find sources for those funds. The many sources from which to obtain funds to start and operate a business boil down to two: the owner and others. These two sources will be discussed in detail in Chapter 7, so only thehighlights are discussed here. before approaching a funding source, decide how much moneyyou and others will put into the business and how much should come from other sources.For example, when looking for startup capital, consider all possibilities.Dozens of resources exist to fund home-based entrepreneurial endeavors. If you have a good business idea, you should he able to find the money you need to make your dream come true.Pursue all the resources available to you. and you will he on your way of greater home-based success. Using our Own Funds Some small business owners prefer to invest only their personalfinds and not borrow to start or operate a business. Others believe they should use little of theirown money and instead make as much profit as possible by using their interest in the businessas security when obtaining finds from others. Normally. owners control a company: they takethe risks of failure but also make the decisions. To maintain control, you must continue to investmore personal funds than all the other investors combined. Moreover, you can maintain controlonly so long as lenders do not become worried about the sal่ty of their moneyFor example. with your own capital. you can lend money to your home business, set
loan conditions. and then pay the loan off to yourself with interest. Another way you can
personally finance your home business is by keeping your current full—time job and work
ing your home business around it on a part-time basis.
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