Business Start Up Plan

Topics: Loan, Debt, Investment Pages: 2 (784 words) Published: March 13, 2012
Starting a business or trying to grow an existing business will require money – lots of it! It is not uncommon to have various funding options or sources to begin the difficult and challenging project of launching a new business venture. A business (regardless of the field) is an investment. It requires resources such as time, capital, human capital, cash reserves and credit – at least that is the way business operate in the United States. Debt/equity. Like any investment debt and equity are the two major playing forces in a business. A debt is when you borrow money from a lender. Commercial lenders are banks, mortgage brokers, some governmental agencies, and other larger corporations such as credit card companies i.e. American Express, Discover, Visa, and MasterCard – the benefit for the lender is the often high interest rates charged on the capital investment, as well as the security required in the form of collateral and other goods offered or posted by the borrower; the benefit for the Borrower comes in the form of readily available cash and credit. If a bank loan or major lending source is not available to a small start up business, another option of funding can be cash advances on credit cards. However, this option is very expensive and extremely risky. Credit cards should only be used for short-term expenses, and not as a means to entirely fund a start-up business. For a small family owned business, the options are many, and in some cases, bank loans, government funding, and other options may be wise partnerships to seek – in efforts to secure larger amounts of financing with better repayment terms. On the other hand, personal investment, if available, may be a better option for a small start up business. This is the route that I think is best for a Pet Photography Business. The reality of today’s economic climate is that most lenders won't finance 100 % of a business – any business regardless of growth potential; it makes more economic sense and it...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Start-Up Sample Business Plan Essay
  • Business Plan Start Up Essay
  • my business plan Essay
  • Business Plan Essay
  • Business Plan Essay
  • External Sources of Finance for start-ups and SMEs Essay
  • New Business Plan for a Gas Station Start Up Essay
  • business plan Essay

Become a StudyMode Member

Sign Up - It's Free