Published by How to Books Ltd in their ESSENTIALS series
September 2001
ISBN - 1857037057
Price: £4.99 (Approximately 96 pages)
Gaining the right type of funding for you business is
just as important as gaining funding at all. This aspect is often missed by
entrepreneurs. They consider that they have the funds themselves to start the
business and do not consider outside funding to be necessary. This could be a
fundamental mistake.
If you invest all of your own money into the business what can you do when
things go wrong? By that stage all of your money has been lost and no funder
is going to consider your request for borrowing. If you had gained support
from the outset, and left some of your capital in reserve, matters would be
entirely different. At least you could do something to rescue the business.
All it needs is for your first customer to be late in paying you and you
are left high and dry. If you had allowed for such things on a contingency
basis in your original business plan it would not be detrimental to your
business.
Gain the right mix of funding from the outset and you are more likely to
succeed. It is not difficult to raise funds provided you adopt the right
approach. Funders are in business to lend money. Understand what they want to
see and how to approach them and you will gain their support.
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