Seek Funding For Your Small Business: The Start-Up Stage
independence in controlling the business, and the more substantial your share of the profit.
From friends and relatives. Seed money from friends and relatives is very common in start-up operations even though borrowing from friends and relatives are frowned at by experienced business people. It is dangerous to mix social or family relationships with business. Friends and relatives can, and often do, interfere with business policies and operational matters.
Outside sources. If you must seek outside sources for seed money, be careful not to accept more than you need. It may be comfortable to have a capital cushion; but the cost will be either dilution of your ownership and control position, or early burdening of your cash flow with excessive loan repayment charges.
The financial performance of your business becomes more impressive to future investors if it has been achieved with a small rather than a large amount of seed money. And this will make it easier for you to obtain the additional funding you will need as your business grows.
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About the Author
Lynne Saarte is a writer that hails from Texas. She has been in the Internet business for some years now, specializing in Internet marketing and other online business strategies.
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