Starting your own business is an exciting endeavor that requires careful planning, determination, and of course, financing. While traditional routes like bank lo ans are available only if you already have cash flow and are willing to provide the bank with 125% security for the lo an. This makes it a basic non-starter for funding for 98% of new businesses. There are numerous creative ways to finance your business. In this article, we’ll explore four effective methods to fund your entrepreneurial dreams.
Leverage Your Network
One of the most accessible ways to secure initial funding is by tapping into your personal network. Reach out to friends, associates, or individuals you know who have some cash to spare and might be interested in investing a small percentage in your business. These individuals may share your dream or have a compelling reason to support your venture. Although this may not provide long-term funding, it can help kickstart your business quickly.
Private Placement Memorandum (PPM)
Consider filing a Private Placement Memorandum with the SEC (Securities and Exchange Commission). This allows you to raise capital from up to 35 to 50 accredited investors or individuals willing to acknowledge the risks associated with investing in your venture. Detailed terms and conditions can be outlined in the PPM, making it a structured approach to attracting investors. Read my book “Step Off the Porch and Start Your Own Business” to know how I worked this in my gold mine deal.
Utilize a Public Shell
In some cases and industries, you can purchase a public shell company and merge your business into it. This process involves inputting your business operations into an existing publicly traded shell company for a fee and a share of stock to the original owners. However, be aware that this method has its complexities and challenges, as discussed in more detail in my book. Visit 6stepbiz.com and discover the various options available for your venture, including S corporations, C corporations, LLCs, partnerships, and sole proprietorships. These entities will set the tone for how others can join your venture.
Personal Funds
You can use your own savings or personal funds to finance your business. Alternatively, you can leverage your personal funds by seeking additional investments from others who believe in your venture. My book provides detailed insights into how you can strategically use your own funds to attract external investors. There are ways to level your funds with those of others, potentially tripling your money. You can utilize the ‘First In, First Out’ program to ensure that you receive your profits first, which can make others more interested in the deal. For more details, please refer to my book.
Angel investors and venture capital firms always want you to have cash flow deals in the pipeline to be paid for and some assets in the company that they can use as collateral for their security. This doesn’t provide much help to new businesses normally. You can find my six rules and book at 6stepbiz.com for assistance
Read “Step Off the Porch and Start Your Own Business” by Brian Collins
When it comes to entrepreneurship, learning from those who have leaped can be incredibly valuable. Brian Collins’ book, “Step Off the Porch and Start Your Own Business,” offers a unique perspective on starting and running a business. Unlike many self-help business books, this one stands out for its candid and edgy narrative.
Collins shares his personal experiences with four real-world business ventures, all of which began with less than $10. He distills his entrepreneurial journey into six rules of success, covering topics ranging from finance, accounting, and taxation to sales, marketing, and even dealing with legal issues.
What sets “Step Off the Porch and Start Your Own Business” apart is its authenticity. Collins doesn’t sugarcoat the challenges and risks of entrepreneurship. Instead, he offers practical insights and lessons learned from his ventures, making it an invaluable resource for aspiring entrepreneurs.
Conclusion
In conclusion, financing your own business requires careful consideration and a willingness to explore various avenues. As you embark on your entrepreneurial journey, remember that learning from those who have walked the path before you can provide invaluable insights. “Step Off the Porch and Start Your Own Business” by Brian Collins is a book that promises not just another business self-help guide, but a raw and honest account of one entrepreneur’s experiences, coupled with practical advice to help you on your way. Grab a copy now on Amazon or visit 6stepbiz.com for more information.
