Seek Funding For Your Small Business: The Start-Up Stage

personally made a sizeable financial commitment in the business. They know from experience that if the venture turns sour it will be easier for you to back out if you do not have your own money at stake. For instance, many competitors sprout in your area like also offering greeting cards printing and other services that is very much similar to yours and at a lower price. That will be the start of the business downfall. Thus, to obtain sufficient financing, you will have to invest a substantial portion of your personal net worth in your venture.

Investors. Investors, whether financial institutions, venture capital firms, or individuals, invest in people as well as in companies, products, or ideas, so take advantage of this. Your money talks when you demonstrate your personal commitment to the venture by putting up your own resources. And investors will not usually listen to you unless you do.

Numerous studies have shown that when your cash contributions are sufficient to finance initial business operations, outside funding usually comes from wealthy individuals. As a general rule, try to put in at least 50 percent of needed seed money for yourself. The reasons for this are: individual investors probably would not be interested unless you have contributed about this proportion, and contributions by individuals will frequently take the form of equity or ownership interest in your business. As you put more than 50 percent of the total capital, the greater becomes your