Financial

Crowdfunding is a new model of business funding that has made a drastic impact in the world of business. This form of funding is as innovative as it is a vibrant new means of funding business start-ups and projects.  While crowdfunding has not hit the mainstream it sure has gained some recognition from many notable investors and world class business schools, including Stanford's Graduate School of Business.  Crowdfunding permits a business' start-up ambitions access to funding that is not channeled through a bank or a venture capitalist. In this sense crowdfunding allows new businesses the flexibility to obtain funding through a multiplicity of lower level sources and financial interests.  Brilliantly, while entrepreneurs gain funding for business...

Following the 2008 global financial crisis, many financial institutions have tightened credit, making it much harder for individuals and small businesses to take out loans. However, as the economy begins showing signs of recovery and consumer confidence increases, many small business owners are looking to banks for funding once again. How To Prepare Before you begin to approach any financial institution regarding a loan, it is important to do your research ahead of time. Wherever possible, it is a good idea to approach a bank that has special knowledge of your particular industry. A common misconception is that it is better to borrow from a large bank than a smaller local one. However, this is not necessarily the case. Smaller banks will be able to offer a more...

Although choosing a loan over selling equity in a business can give an owner more control over their debt, if they cannot manage that debt then these efforts will end up being wasted, and this will bring the owner back to square one.  While filing for bankruptcy has become an option for some business owners in the current economy to save their business, the long term damage done to personal credit scores and the business itself is irreversible. Instead, there are many methods a small business can employ to manage their debt and create powerful strokes for bolstering their solvency as a business. Filling in the hole As stated above, there are many alternatives to bankruptcy a business can take to bolster their financial solvency and escape the clutches of debt....

One of the biggest questions new entrepreneurs have to answer is how much initial capital they will need to invest. The question should really be phrased in terms of six-sub questions pertaining to the words: who, what, where, when, why, and how. After answering these questions the entrepreneur will be much better equipped to manage their money and achieve future prosperity and success in their business endeavors. In the big picture how much money an entrepreneur requires to fund their business is contingent on the market itself (what), who they are selling to, and who is investing in their company. Here, the amount of funding needed is affected by numerous factors so the business must always maintain a frugal attitude concerning its spending habits.  Like many...

Seeking private investment for your new business is a very common strategy to raise capital. A private investor can help finance your business by giving you a loan in return for interest payments. However, an investor can also provide funds in return for equity. This means that the investor will be a part owner of your business. Avoiding Common Mistakes When you are seeking investors to borrow money from, it is bad practice to contact every investor whose contact information you come across. The reason for this is because not all investors will invest the same amount of money. In addition, not all investors are interested in investing in the same types of businesses either. Therefore, it is important to do your research and only contact investors who are suitable...