Chapter 18 Ten Ways to Fund Your Business Plan In This Chapter Finding the cash you need Weighing the price of various forms of support | H ii Chapter 18 Ten Ways to Fund Your Business Plan In This Chapter Finding the cash you need Weighing the price of various forms of support great idea sparks most business start-ups but money is the fuel that keeps those start-ups running. Even if you re launching a one-person freelance business chances are you need cash to get off the ground. If you re starting a bigger company and especially if you re founding a high-tech or manufacturing enterprise chances are good that you need lots of cash. This chapter shares 10 places you can to turn to when searching for money to fund your company. Your Own Pocket Using your own funding for your start-up has its advantages and disadvantages. If you get your business up and running by using only your savings you maintain 100 percent ownership and 100 percent control. But you also take on all the risk If the company goes under your money goes with it. If you link arms with investors you still tap your own pocketbook but you share the risk and the rewards with others. If you seek loans banks require you to pledge personal assets as collateral to secure the debt. And if you go the venture capital route see Chapter 19 most investors insist that you ante up some of your own cash largely as proof of your commitment before they ll add their own. Friends and Family Turning to friends or family members for help is a time-honored tradition when starting a small business. Some people borrow money in return for a H ii 302 Part V The Part of Tens simple IOU to be paid back in full when the company starts making a profit. Others set up a more formal loan along with an agreement for paying money back with interest on a specific schedule. Whatever arrangement you reach make sure that everyone involved understands the terms and knows what to expect and when to expect it. To be on the safe side put the terms in writing and ask all parties to sign the documents because disagreements over money can spoil even the closest family or friendly .
