- Many experienced business owners put 20-to-30% cash into startups, and finance the rest. Like a mortgage, a small amount leverages a larger opportunity. Most franchisors provide 3rd-party referrals for financing business loans. Some lend internally.
- Contact your local Small Business Administration (SBA). They guarantee up to 75 - 85% of business loans in conjunction with lending institutions.
- If you are a military veteran, or spouse/widow of a veteran, ask the SBA about the Patriot Express Program for business loans.
- Work with banks that lend business capital. They will teach you what is required in a good business plan.
- Investigate converting your 401k, IRA, or other retirement funds into business capital. Ask me for the website of a company that can help you do this.
- Consider using a home equity line-of-credit for start-up expenses.
- A good rule of thumb is to use only half of your savings for a business startup. All business opportunities have risk.
- Perform your due diligence before investing. If it looks too good to be true, it's time to do more investigation. (Some people never read the FDD. Don't be one of them!)
- Develop a strong business relationship with a good CPA. They will help you avoid paying too much in taxes.
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