Ethics-Governance: Article: Unconventional Home Business Financing Alternatives

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Unconventional Home Business Financing Alternatives - from U Publish Free Articles Unconventional Home Business Financing Alternatives By: Kevin Erickson , Posted on: 2005-11-16 While unconventional financing can cost you money in the long run, it does allow you to avoid borrowing money as a loan that needs to be paid back... whether or not your business makes a profit. With the alternative financing options presented here - if your business fails, your obligation to pay back the money expires. These alternatives, to heading down to your local bank or credit union for a personal loan, are venture capitalists and so-called "angel" investors. In both instances, you are asking individuals to invest their money in your business in exchange for a share of the profits. Venture Capitalists Venture capitalists provide money or capital to all types of start-up businesses but should only be considered if your home business concept is focused around technology and if you had access to better hardware it would allow you to make a bigger profit. Venture capitalists primarily look for businesses that have the potential to grow quickly and are run by an experienced and confident owner or management team. Approaching a venture capitalist is similar to approaching a bank to ask for a loan, except you need to make a more convincing case. The venture capitalist you meet with will be a specialist in whatever industry you're planning to enter and they will turn and run faster than they can say hello and goodbye, if you don't convince them beyond a shadow of a doubt that you know exactly what you are doing. Research any venture capital company before you meet with them. Verify what they are looking for and who their existing clients are. An important point to remember is that if they ever ask you to pay anything, you are being scammed, so be very wary of anyone who insists that they won't sign an NDA (non-disclosure agreement or privacy agreement) before they see your idea because they might hand it over to one of the companies they've already invested in. Full Article: http://www.upublish.info/Artic...ss-Financing-Alternatives/2140


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