Business financing options

THEEMost Popular Роpular Small Business Financing Options for Startup Entrepreneurs Do you know the 5 most commonly used business financing options for startup companies? It all starts with knowing the best options so let's dive in... CREDIT CARDS According to the 2009 Small Business Credit Card Survey, MORE THAN 86% of small business owners used credit cards to start or grow their business. THE KEYBRIDGE STUDY FOUND THAT THE EXPANSION OF CREDIT CARD LENDING BETWEEN 2003 & 2008 the creation of 1.6 MILLION JOBS AND FOR EVERY$1,000 CREDIT CARD USE, A $5,500 INCREASE IN REVENUE WAS EXPERIENCED BY THE SMALL BUSINESS. So the bottom line is that about 9 out of 10 small business owners will be using credit cards. I like what T. Boone Pickens says about planning. He said, "A PLAN WITHOUT ACTION ISN'T A PLAN. IT'S A SPEECH." MICROLOANS MICROL MICROLOANS MICROLO CROLOANS MICROLOANS MICROLOANS ICROLOANS MICROLO MICROLOANS MICROLOANS Microloans are small loans typically issued to borrowers who are low income earners or have less than perfect credit and do not qualify for traditional bank financing. ACCORDING TO THE MICROFINANCE INFORMATION EXCHANGE MICROBANKING BULLETIN ISSUE #19 NEARLY 74 MILLION ENTREPRENEURS ACROSS THE WORLD HAVE MICROLOANS THAT ARE EQUAL TO A COMBINED TOTAL OF $38 BILLION U.S. DOLLARS (AS OF 2009). STATISTICS VARY BUT MOST MICROLENDERS REPORT THAT BETWEEN 95-99% OF THEIR LOANS ARE REPAID Furthermore, according to a recent survey conducted by Accion U.S. Network, 42% of survey respondents said their business income increased (between 2010 & 2011) as a result of a microloan. MICROLOANS ARE A GREAT WAY TO GET STARTED THERE ARE MICROLENDERS IN EVERY REGION AND EVERY STATE IN THE U.S 29 KIVA.ORG ALLOWS YOU TO BE AN INVESTOR AND SELECT THE BORROWERS YOU'LL LEND TO IN SMALL INCREMENTS AS LOW AS $25 THE LARGEST MICROLENDER IN THE WORLD IS ACCION.ORG ACCION.ORG PERSONAL SAVINGS THIS IS THE #31 OPTION FOR MOST PEOPLE WHO FIND THAT THEY DON'T QUALIFY FOR CREDIT CARDS, MICROLOANS, OR ANY OTHER TYPE OF "TRADITIONAL BANK FINANCING." PERSONAL SAVING THE 3 F'S FAMILY, FRIENDS, & FOOLS Entrepreneurs are famous for over-selling their cool ideas to their Uncle Louie and then seeing things not work out. IF YOU DO ACCEPT AN INVESTMENT FROM A FRIEND OR FAMILY MEMBER THEN TRY USING SOMETHING LIKE ZIMPLEMONEY.COM AND, WHATEVER YOU DO, BE SURE TO TREAT YOUR FRIENDS AND FAMILY NO DIFFERENT THAN YOU WOULD A SAVWY ANGEL INVESTOR THEY DESERVE UPDATES, COMMUNICATION, AND TO BE ONE OF THE FIRST PHONE CALLS WHEN THERE IS A PROBLEM. YOU SHOULD TREAT THEM AS THE PARTNER YOU ALLOWED THEM TO BECOME WHEN YOU ACCEPTED THEIR CHECK. AS FOR THE FOOLS I'LL LEAVE THAT ONE ALONE. RETIREMENT ACCCOUNTS (E.G. 401K, 403B, IRA.S, ETC.) This financing option is highly popular for individuals who want to purchase a franchise. Rollover for Business Startup (ROBS) Strategy. This strategy is slightly complicated so you'll want to consult with an experienced ROBS Professional ROBS strategies are common but are right up there as the most risky ways to finance a business along with Home Equity Lines of Credit and using personal savings. CONCLUSION Successful business owners all have one thing in common. They take action. They execute. Mistakes and failures come with the territory so learn your options, move forward, and accept that there will be lessons to learn along your road to success. If you've read this far then you've probably got an itch. Figure out which way to finance your dream and get that itch scratched! %24