How To Raise Money to Start Business and Where to Get Money for Business

The common questions for anyone who want to start business are: How to raise money to start business, and where to get money for my business?

To raise money to start business is not as difficult as most people seem to think. This is especially true when you have an idea that can make you and your backers rich. Actually, there’s more money available for new business ventures than there are good business ideas. We will help you for where you can get money for business.

A very important rule of the game to learn: Any time you want to raise money, your first move should be to put together a proper prospectus.

This prospectus should include a resume of your background, your education, training, experience and any other personal qualities that might be counted as an asset to your potential success. It’s also a good idea to list the various loans you’ve had in the past, what they were for, and your history in paying them off.

You’ll have to explain in detail how the money you want is going to be used. If it’s for an existing business, you’ll need a profit and loss record for at least the preceding six months, and a plan showing how this additional money will produce greater profits. If it’s a new business, you’ll have to show your proposed business plan, your marketing research and projected costs, as well as anticipated income figures, with a summary for each year, over at least a three year period.

It’ll be advantageous to you to base your cost estimates high, and your income projections on minimal returns. This will enable you to “ride through” those extreme “ups and downs” inherent in any beginning business. You should also describe what makes your business unique—how it differs form your competition and the opportunities for expansion or secondary products.

This prospectus will have to state precisely what you’re offering the investor in return for the use of his money. He’ll want to know the percentage of interest you’re willing to pay, and whether monthly, quarterly or on an annual basis. Are you offering a certain percentage of the profits? A percentage of the business? A seat on your board of directories?

An investor uses his money to make more money. He wants to make as much as he can, regardless whether it’s short term or long term deal. In order to attract him, interest him, and persuade him to “put up” the money you need, you’ll not only have to offer him an opportunity for big profits, but you’ll have to spell it out in detail, and further, back up your claims with proof from your marketing research.

Venture investors are usually quite familiar with “high risk” proposals, yet they all want to minimize that risk as much as possible. Therefore, your prospectus should include a listing of your business and personal assets with documentation—usually copies of your tax returns for the past three years or more. Your prospective investor may not know anything about you or your business, but if he wants to know, he can pick up his telephone and know everything there is to know within 24 hours. The point here is, don’t ever try to “con” a potential investor. Be honest with him. Lay all the facts on the table for him. In most cases, if you’ve got a good idea and you’ve done your homework properly, and “interested investor” will understand your position and offer more help than you dared to ask.

When you have your prospectus prepared, know how much money you want, exactly how it will be used, and how you intend to repay it, you’re ready to start looking for investors.

As simple as it seems, one of the easiest ways of raising money is by advertising in a newspaper or a national publication featuring such ads. Your ad should state the amount of money you want–always ask for more money than you have room for negotiating. Your ad should also state the type of business involved ( to separate the curious from the truly interested), and the kind of return you’re promising on the investment.

Take a page from the party plan merchandisers. Set up a party and invite your friends over. Explain your business plan, the profit potential, and how much you need. Give them each a copy of your prospectus and ask that they pledge a thousand dollars as a non-participating partner in your business. Check with the current tax regulations. You may be allowed up to 25 partners in Sub Chapter S enterprises, opening the door for anyone to gather a group of friends around himself with something to offer them in return for their assistance in capitalizing his business.

You can also issue and sell up to $300,000 worth of stock in your company without going through the Federal Trade Commission. You’ll need the help of an attorney to do this, however, and of course a good tax accountant as well wouldn’t hurt.

It’s always a good idea to have an attorney and an accountant help you make up your business prospectus. As you explain your plan to them, and ask for their advice, casually ask them if they’d mind letting you know of, or steer your way any potential investors they might happen to meet. Do the same with your banker. Give him a copy of your prospectus and ask him if he’d look it over and offer any suggestions for improving it, and of course, let you know of any potential investors. In either case, it’s always a good idea to let them know you’re willing to pay a “finder’s fee” if you can be directed to the right investor.

Professional people such as doctors and dentists are known to have a tendency to join occupational investment groups. The next time you talk with your doctor or dentist, give him a prospectus and explain your plan. He may want to invest on his own or perhaps set up an appointment for you to talk with the manager of his investment group. Either way, you win because when you’re looking for money, it’s essential that you get the word out as many potential investors as possible.

Don’t overlook the possibilities of the Small Business Investment Companies in your area. Look them up in your telephone book under “Investment Services.” These companies exist for the sole purpose of lending money to businesses which they feel have a good chance of making money. In many instances, they trade their help for a small interest in your company.

Many states have Business Development Commissions whose goal is to assist in the establishment and growth of new businesses. Not only do they offer favorable taxes and business expertise, most also offer money or facilities to help a new business get started. Your Chamber of Commerce is the place to check for further information of this idea.

Industrial banks are usually much more amenable to making business loans than regular banks, so be sure to check out these institutions in your area. insurance companies are prime sources of long term business capital, but each company varies its policies regarding the type of business it will consider. Check your local agent for the name and address of the person to contact. It’s also quite possible to get the directories of another company to invest in your business. Look for a company that can benefit from your product or service. Also, be sure to check at your public library for available foundation grants. These can be the final answer to all your money needs if your business is perceived to be related to the objectives and activities of the foundation.

Finally, there’s the Money broker or Finder. These are the people who take your prospectus and circulate it with various known lenders or investors. They always require an up-front or retainer fee, and there’s no way they can guarantee to get you the loan or the money you want.

There are many very good money brokers, and there are some that are not so good. They all take a percentage of the gross amount that’s finally procured for your needs. The important thing is to check them out fully; find out about the successful loans or investment plans they’re arranged, and what kind of investor contacts they have—all of this before you put up any front money or pay any retainer fees.

There are many ways to raise money—from staging garage sales to selling stocks. Don’t make the mistake of thinking that the only place you can find the money you need is through the bank or finance company.

Start thinking about the idea of inviting investors to share in your business as silent partners. Think about the idea of obtaining financing for a primary business by arranging financing for another business that will support the start-up, establishment and developing of the primary business. Consider the feasibility of merging with a company that’s already organized, and with facilities that are compatible or related to your needs. Give some thought to the possibilities of getting the people supplying your production equipment to co-sign the loan you need for start-up capital.

Remember, there are thousands upon thousands of ways to obtain business start-up capital. This is truly the age of creative financing.

Disregard the stories you hear of “tight money,” and start making phone calls, talking to people, and making appointments to discuss your plans with the people who have money invest. There’s more money now than there’s ever been for a new business investment. The problem is that most beginning “business builders” don’t know what to believe or which way to turn for help. They tend to believe the stories of “tight money,” and they set aside their plans for a business of their own until a time when start-up money might be easier to find.

The truth is this: Now is the time to make your move. Now is the time to act. the person with a truly viable business plan, and determination to succeed, will make use of every possible idea that can be imagined. And the ideas I’ve suggested here should serve as just a few of the unlimited sources of monetary help available and waiting for you!

Now you should get idea for how to raise money to start business, how to get money for business, and where to get money for my business.

How to Promote Your Newly Started Business

Tool talk: Internet marketing business is an excellent way to promote your newly started business. This does not even take millions of dollars for publicity of your business or bringing your corporation in spotlight. Expense of advertisement is too hard to handle, yet there are many cost-effective ways.

Internet marketing can establish your online power. We are going to state some efficient ways that will help your business exposure in a commercial mode. To get your desired results, you have to be persistent with these practices.

First of all you need to develop a website to get profitable outcomes from internet marketing strategies. In order to get this profit, you have to appoint or generate a web developer. She/he will help you to display your products and services in front of buyers. Following internet marketing skills can be obtained by these policies.

1. Affiliate Marketing
“Affiliates” is the name given to network of small websites, which helps to get a blast of traffic to a website. Paying a specific percentage from profit, you can employ these affiliates.

2. Links
SEO is future; your target is to get ranking with search engines. You can do link building to get better rankings. Trading the links with other associated businesses is an ultimate way to do it.

3. Newsletters
If you send newsletter to your newsletter-subscribed customers it will establish a good will policy not only with ongoing but also with upcoming customers. Newsletter has to be proficient, precise and written in a friendly tone, which can serve general viewers.

4. E-mail Marketing
It is a gainful and profitable method, used as internet marketing tool to alert the customers with products and services. Always be careful about your reputation so the customers don’t complain.

5. Articles
Your website reflects the quality of the products and the services you give. Always be sure about the content that is being put on website. Articles must have content, so search engines can index you. When you get indexed, there is nothing that can stop traffic to your website.

6. Forums
You can build your reputation through forums. All you need to do is to join forums that discuss your business related services. You can use your signature files to link with other websites. Answering regularly or posting responses is an effective way to optimize your website in search engines via link building and signature files.

How Software Products for Small Business CRM Help Starting Businesses

The business world today moves faster as more and more developments come into existence in terms of doing things efficiently and rapidly. The major contributors to the fast paced world of business would be the changing trends in the digital age. For one, software products are capable of handling laborious tasks of searching for data and reporting about progress much easier and faster. The progress of businesses nowadays has become substantial proof that shows how software products for Small Business CRM help starting businesses and even maintain already-established ones.

To maintain efficiency and business stability, dependence on technology is not required but is essential especially in the competent markets of the business world at present. An accountant alone could search through a hundred folders the whole day just to find a single file while database software products could find the same file within seconds. Surely, if you want to keep up with the competition, you’ll need tools that would help maximize your efficiency.

Customer Relations Management or CRM could also be handled by specialized software such as the Sage MAS 200. This particular business strategy had actually profited a lot of established businesse in different industries. This focuses completely on bringing customer satisfaction to achieve customer loyalty.

CRM achieves customer loyalty in many ways. Knowing what a customer wants and needs and profiling their financial ventures within your business could all be handled by one application. As assigned employees gather needed data from the customers such as surveys or by submitting their own sales records to the company, the software could keep tabs in all of this and provide a reported summary and analysis within just seconds.

If you are starting a business, using CRM is one of the best ways to make your profits and your business grow. You are also one to benefit from the software products as you’ll easily get customer profiles within a short span of time. You won’t have to hire extra people to monitor this for you as the software itself could really help you deal with things without any added hassles.

Small business IT consulting companies could actually help you understand more about what type of software you actually need to buy. Most of these companies would create a framework based on your industry and the nature as to how you cater to your consumers. As your company is just starting, having the right tools to invest in is always a must.