Why You Want to Start Your Own Small Business

In a capitalist society, it is a great business model because what you do dictates on how successful you are and how much you earn.  Or at least, that’s the theory.  Unless you are the business owner, what we are doing is making money for someone else while we are the wage slave.  There are limitations for how much we make – a ceiling on our skill set based on industry standards.  But for those among us who have more to offer and who ourselves can be small business owners, do we really want to have someone else take our ideas and make someone else rich?  I think it’s best to take the take the initiative and apply for a business loan or find small business funding and be in control of our own destiny.

In these tough economic times, we have seen that there is no more job security.  The company that you’ve been loyal to for the past twenty five has laid you off due to job cuts and your financial security is down the drain.  Where is their loyalty to you now after all your ideas, and the money that you’ve made for the business?  I will never say it’s too late to start a small business yourself as some people just stumble into it after trying to find other avenues of income.  There is no lavish plan to come up with some innovative technology that would have venture capitalists and angel investors pouring in.  Big firms are not knocking on their doors to buy out their business.  No, these are ordinary people trying to supplement their income with the skills they already have.  They might be selling jam to local people in the neighbourhood and by word of mouth, the good advertising spreads out.  The small business owner then expands to the local grocery chains.  Soon, they are getting small business funding to set up an e-commerce site. 

The personal satisfaction of owning your own small business is immense.  You can see your efforts in the business materialize as it makes an income for you.  You know that your efforts in improving the business will affect your financial bottom line, and not someone else’s. 

Some people will always be wage slaves but if you have the initiative, know how and drive, let go of your fears and start your own business with small business funding.

Tips to find venture capital funding

Finding venture capital startup funding to finance the next big idea has always been the dream of many entrepreneurs.  In the eternal optimism of the American spirit, we all think our product or service is going to make us the next household name and billionaire.  In our mind, we just need to get the break and find some private investors or angel investors to invest in the startup business.

I’m here to tell you it’s okay to dream but there’s real work to be done in finding funding for your small startup.  To be honest, do you think anyone will hand you money on a whim?  Family members, banks,  venture capitalist firm that rounds up private investors will carefully look at your business plan.  Does it communicate well what the business is about?  The business plan should be short and easy to understand, as good businesses are simple.  Also, VC firms will carefully scrutinize the personality of the people that make up the company.  This is your team.  It’s teamwork that makes those stressful and long nights bearable.  Make sure that you have a solid team around you as this is critical to any company’s success.

In exchange for the small business startup capital, the investors such as venture capitalists will want shares in the company.  The company and the VC firm will need to enter negotiations on how many shares the firm gets for the venture capitalist funding.  Typically, it’s somewhere between 10-50%.  The VC firm will also want to be involved in the decision making process of the company to ensure the success of the business.  This is not necessarily a bad thing as the intent is to make the company go public on the stock exchange market or for it to be bought out by another company.

In reality, you’re not just courting a venture capitalist firm for business startup capital, but you’re also interviewing them too.  A good venture capitalist firm should be experienced in taking a company public and also getting them networked with useful contacts in the industry.  It is your responsibility, as much as it is the VC firm, to ensure that it is a good fit and partnership you’re entering.

In closing, when trying to venture capital startup funding, make sure you have your business ready to be scrutinized by private investors, angel investors, and venture capitalists.  Your business plan should be short but comprehensive.  Make sure you have a core group of people in your team that you can work well with.  Lastly, it’s just as much about you interviewing the VC firm as it is about them interviewing you.  You wish the best for your company and it’s your responsibility to get it there with the right mixture of people and vc funding.

Welcome to Small Business Funding

Hello, and welcome to the Small Business Funding website.  Here, you’ll find information to on how to find funding for your small business startup.

Businesses need to grow and get off the ground. Businesses need resources to expand. At the Small Business Funding website we will discuss the process in which entrepreneurs can go about finding funding for small businesses or venture capital funding for explosive growth.   Against all odds, your next business venture could be the one that succeeds with a little help from startup business funding.