Sep 25, 2018

Where does the money for starting a business come from?

Simply put, the money for starting a business can come from a wide range of sources. Namely; Bank Loans, Personal Loans, Government Grants, Investors, Family Members, Personal Savings, Expenses account (credit cards, personal loans, etc) and crowdfunding ( GoFundMe, Indigo, Kickstarter, etc) to name a few. As you can see there are many ways to fund a new business. What funding type you choose will be base on personal preference, availability, and the circumstances under which the funds are being acquired.

Let us say you are seeking a bank loan, then it is very likely that you will have to write a full traditional startup business plan (TradBizPlan). - let us just say here, that TradBizPlan have very little use the startup businesses in terms of success in startup, so we recommend that if you do a TradBizPlan please be sure to work out some real-time dynamic tools that will help you with the "Assumptions" in the TradBizPlan.

At the highest end of the startup funding spectrum is venture funding. If this is your preferred source of funding, then you will have to do a lot more than a TradBizPlan and work out a full Pitch-Deck ( A set of documents and due diligence needed by venture investors to assure to themselves that the business is worth investing in.

What about starting a business with the little or no money one might have, this is called Bootstrapping. Here we use all the connections, resources and little money - if any, that we have to try and start the business. To be sure, you can start a viable business this way, and many very successful business have started like this.

With all that said, we would say that what your circumstance is, given that you have a market and the product or service (existing or not) to meet the needs of that market, you will have a way to get started in serving that market and building a business in the process.

©Orlando O Spencer I, Inc.

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