Raising Capital by businessfi01


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									Raising Capital

Now that you have a great product and you are ready for to run your business. Now all you need is cash.
In acquiring to raise your capital for your business one of the most important things is a detailed plan. If
you have a great product but still without the sufficient amount of capital to keep it running, then you
can't gain profit from it. You must come up with a good capital acquisition strategy.

Raising capital to start your new business may seem like a daunting task. If you want to raise your capital
in order to operate your business, then this may teach in the task that you must do in order to raise your
capital to run your business. If you have a feasible idea to return your investment, then there is a good
chance that you can find suitable investors to join you. This article will educate you on how to raise your
capital for your small business.

Your first task is to create a detailed business plan. The business plan needs to be clear and concise. This
means that your business plan includes information about you such as your background, training in the
area of business and your experience. Similar with the resume for a job, you must put a reference or any
favorable people that can assist you why an investor should believe your ideas.

Make a consistent plan on how to pay the investor. The main reason why people are lending you their
money is if they see profits for lending it to you. Make sure that your business is viable. Your market
research in your plan must show that it can give them adequate return on investment. These will make
them feel secured if you can give them an idea on how to repay them.

Check some pages on your local newspaper. Many venture capitalists advertised this way. However, the
rates that they offer are so high because venture capitalist can take on a risky investment. You can run
your business using this method. Just make sure emphasize how much they can receive for the load of
their fund if they will invest their money in your business.

Here some sources of business capital to start your business:

1. Personal money or savings

2. Capital for your family and friends

3. Assets such as houses, cars and etc.

4. Bank loans, credit cards

5. Venture capitalist

6. Angel Investors
These are just some basic ideas to raise your capital. Make sure to be ready with proper documentation
that must be presented to the potential investors. By preparing a reliable business plan, having a
feasible plan on how to pay investor and by reading some classified pages of your newspaper to seek for
venture capitalists then you will be able to get the adequate fund that you need to run your business.

There are many different ways to raise your capital. Be ready with all plan, make sure that it is feasible.
You must also be professional and do not include things that you cannot comply in your plan.

Marjorie T. Wolf has been in business industry for 6 years and has an excellent knowledge in starting
small business.

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