What's The Best Way To Raise Money - Entrepreneur Poll

[entrepreneur2008]

Try 40billion.com and entrepreneurs can raise money for small businesses through their networks of friends and family. Today, 40billion.com facilitates gift contributions (basically donations), but soon will offer loans and equity investments too.

[gowriter]

credit cards.

[BC SEO Guy]

Fund it yourself or from family or friends or leverage something you own and borrow it.

Even once you have success it is still damn near impossible to raise funds from investors because that requires a whole other skill set that the average entrepeneur does not have.

[Shania-CPA]

Certainly it's important to project your financial requirements and be able to answer for yourself when you will recover your capital (payback period) -- the same way you have to prepare the numbers if you're raising external funding.
Being your own boss is the primary motivator -- so I'm not too keen on heavily relying on outside capital just to start your business. Better to get it up and running yourself, funnel income from your day job to start with and then save enough to be able to quit and work full-time.
Having to report to outside investors is practically the same as being tied to an employer -- which is a major reason why you started your own business in the first place. I prefer organic growth.

[AOCenteno]

The best way to get money is to show that you can make money with what you have.

[MSwengel77]

In my opinion, i believe that for starters, you would have to raise your own capital before you can even ask some from friends and families. Its not easy but hey, one has to start from somewhere.

Agreed 100%

[Iamnotsatisfied]

If your just starting out in business then KEEP AWAY from LOANS. There is a big chance your first business will fail, and you will end up in debt because of that. That's very discouraging for entrepreneurs and it might put you off from doing it again. In business someone who is persistent ends up profiting, and a debt after your first try will stop you from being persistent. Well that's what I think.

[Scott Bradley]

After the success of our last YoungEntrepreneur.com poll on The Top 20 Startup Mistakes that entrepreneurs make, we're ready to get our new poll started!

This time I want to talk about raising money. It's been said that there is no such thing as a startup with too much money. You need capital to invest in sales, marketing, staff, offices, research, etc.

Every business needs some startup capital so my question to you is what's the best way to raise money?

I would suggest that before you worry about getting a roll of cash, that you start taking action NOW on your business. Try and get it off the ground with as little money as possible...and then once you have SOMETHING to show investors THEN you approach people you know like and trust to then ask them for money.

No one in their right mind will blindly give you money unless you have some value to provide the marketplace!!!!

Get off of your butt and make it happen!!!!
The only way you can do it with little to no money starting off is by using your MIND and your driving passion to get you through the beginning stages!

[Iamnotsatisfied]

Come up with a great business idea, that has 80% of succession probability. Then aproach someone who can see the potential in your product/ business idea.Give them some fall backs such as registering the company in their name or similiar untill you start profiting a lot and you can buy them pay back their initial investment. Show them your fool proof business plan... its your job to convice them that you are not a scammer!

[creditspecialist]

Evan,
I like all the suggestions for funding. But, there's another alternative...unsecured credit, business & personal. Someone can get their own credit and be in control of their own destiny.
Of course, every alternative has its own pros & cons.

[ferrer76]

There are many ways for getting capital into our account. but the best way is to plan for your own business as an young entrepreneur you can achieve what ever you want in less time.

[jon_2002]

There are lots of businesses that you can do that require no capital.
However, if one must get finanacing, beg, borrow, and steal is my advice.
1.) Banks - Beware of Fees. Make all your payments!
2.) Venture Capitalists - Will take a percentage of Ownership
3.) Friends and Family - What will happen if you can't pay them back?
4.) Angels can be Devils.
5.) Bonds, and other banking instruments do have severe penalties if obligations are not met.

Interested in more? endurancetrading.com

[bestsellers]

Thant is interesting!I like u idea!!

[yakapo563]

That's a good topic because I am actually going through that right now. I had to become a little creative and come up with some money to start up my activity. So if it's something simple, lets say 500.00 - 1000.00, why don't you go out and cut some yards, or wash some cars. I really wanted to ask my friends and family, but I think I already burned my capital bridges with them. Or you can go out and find some sponsors. Tell whoever it is that they will be advertised in your business for helping you out get started. These might not be the best examples, but or some that worked for me. I've been eating some HUMBLE PIE lately, but it's good for the soul.

Yakapo563

Success is the sum of small efforts, repeated day in and day out.
-Robert Collier

[Warranties-For-Less]

Good question,

Everyone has gone through this same issue who has started a new business. Of course, it depends on the business, but I started my first business by aligning with a complimentary business who I first shared an office with, so you may want to try and co-op some of the expenses to start a business. Loans are near impossible in a recession, never mind to any business which does not have two years of financials and a profit to show a bank. Angel funding is also tough at the moment, but again, it all depends on the business.

Good luck, Mike