Funding Your Company Ideas
By Stu Leventhal ~ Guru Marketing Tips Editor
“He that goes a borrowing goes a sorrowing.” Is a quote by one of America’s original funniest men, Benjamin Franklin.
Many famous people joke about financing problems and money management woos. Earl Wilson the newspaper writer said it this way. “If you think nobody cares if you’re alive, try missing a few car payments.”
We all laugh about being broke because we have all been there. We all know the seriousness of making poor money decisions. You can’t laugh your way out of debt. The only thing to do is get a handle on your spending and start saving. At some point, once you have built up some extra funds you will invest in something that can grow interest for you.
This is called putting your money to work!
Getting started with smart finance begins with making a budget. You analyze the money you have on hand and any money you can count on coming in steadily, such as wages. You subtract your living expenses and see if there is any left over. If there is extra, you save a nice portion of it or invest most of it for the future. If there is no money left over then you have to look at cutting out some expenses or lowering your costs (overhead) so you have some money to begin saving.
Streamline your operation, cut out the fat and only buy what you absolutely have to. Make due.
Bear in mind that everyone has to account for the unexpected things to happen, bad surprises that will cost you money to get out of. Yes, you need an emergency fund. If you wait and do not put away some money to handle sudden problems you will eventually get caught without the funds you need when an emergency strikes. You may end up borrowing to fix your problem. When we borrow we pay back more than we asked for and thus lose money.
The lenders especially credit card companies, make a profit on us. Therefore good finance means no borrowing or little borrowing. Plus when you do borrow money, do it at great terms and low interest rates.
The way you get the best interest rates is by making arrangements to borrow before you actually need the money. This can be done by applying for a line of credit that you pay nothing on until you actually use the line of credit money. You will also need to have a stellar credit rating to get the best borrowing rates. That means never paying your bills late!
Arthur Miller the Author said, “Everybody likes a kidder but nobody lends him money.”
Proper financial health comes from planning ahead for the future and being prepared.
Many famous people joke about financing problems and money management woos. Earl Wilson the newspaper writer said it this way. “If you think nobody cares if you’re alive, try missing a few car payments.”
We all laugh about being broke because we have all been there. We all know the seriousness of making poor money decisions. You can’t laugh your way out of debt. The only thing to do is get a handle on your spending and start saving. At some point, once you have built up some extra funds you will invest in something that can grow interest for you.
This is called putting your money to work!
Getting started with smart finance begins with making a budget. You analyze the money you have on hand and any money you can count on coming in steadily, such as wages. You subtract your living expenses and see if there is any left over. If there is extra, you save a nice portion of it or invest most of it for the future. If there is no money left over then you have to look at cutting out some expenses or lowering your costs (overhead) so you have some money to begin saving.
Streamline your operation, cut out the fat and only buy what you absolutely have to. Make due.
Bear in mind that everyone has to account for the unexpected things to happen, bad surprises that will cost you money to get out of. Yes, you need an emergency fund. If you wait and do not put away some money to handle sudden problems you will eventually get caught without the funds you need when an emergency strikes. You may end up borrowing to fix your problem. When we borrow we pay back more than we asked for and thus lose money.
The lenders especially credit card companies, make a profit on us. Therefore good finance means no borrowing or little borrowing. Plus when you do borrow money, do it at great terms and low interest rates.
The way you get the best interest rates is by making arrangements to borrow before you actually need the money. This can be done by applying for a line of credit that you pay nothing on until you actually use the line of credit money. You will also need to have a stellar credit rating to get the best borrowing rates. That means never paying your bills late!
Arthur Miller the Author said, “Everybody likes a kidder but nobody lends him money.”
Proper financial health comes from planning ahead for the future and being prepared.
8 Wise Ways to Raise Company Funds For New Projects:
- You can borrow money from a bank - This usually requires writing up a business projection plan stating what you are going to use the money for and showing that you have the means to pay the borrowed money back plus interest.
- You can sell some company stock - But remember, you will then own less of your company!
- You can ask friends and family members for a loan.
- If you own property like real estate, perhaps a home with a mortgage that is partially paid off, you could use it as collateral to secure a loan.
- You could seek investors - There are plenty of wealthy folks that like to help people with new business ideas get started. Just know that investors expect to make a profit from helping you launch your business venture.
- You could pitch your entrepreneurial biz idea to venture capitalist organizations - Many Colleges and Universities for example, help startup companies with good ideas and big dreams get off the ground. Pension funds also have lots of money that they can be convinced to lend to entrepreneurs with grand ideas...as long as the idea is a sound business idea, backed by stats, math and industry research.
- Large companies can issue bonds to raise needed funds. Your company will have to pay the bond purchasers back at the designated time that the bond comes due at a specified interest rate. For example, a ten year bond could cost $2000 per bond. The bonds may be required to pay an interest rate of 9% with their pay back date being ten years in the future.
- Governments have lots of programs for helping entrepreneurs and business people expand and start companies. In the USA, the Small Business Association is the place to find loan money at decent rates. Some government programs even issue grants to businesses that do not have to be paid back. Usually the business idea needs to be deemed beneficial to the community that is giving the grant.
- As mentioned earlier the best way for companies to find funding is by operating at a profit. Reinvesting one's profit back into the company so the company can expand is the least expensive means of securing more working capital. Grow your company slowly and steadily. Make wise business decisions and you will make more and more profit well into your future.
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