Small Business Finance

When starting a new business financing is key. As a young entrepreneur, I lack much of the capital to start my own business. I have begun to research some of the ways to obtain start-up capital for a small business. The first step is to decide how much money your business requires. This can be done using multiple financial worksheets. During this phase you should determine the costs of: 


1. Administrative and General expenses (Salaries, benefits, taxes, rent, insurance, ect.)
2. Your gross and net income. 
3. Required startup capital.
4. Your assets. 


Almost 50% of new businesses fail due to lack of planning. If you plan your financials for the first few years of operation, you are more likely to get the startup capital you need and profit. When researching how to obtain startup capital for my business I came across a few different options. The first option is applying for a bank loan. A bank loan is entirely based on your credit, so as a young entrepreneur it can be tough to get approved for enough capital. I have decided that in addition to a bank loan, I will seek out further funding through capital investors such as the Winter Park Angels. 


From their website: "Winter Park Angels is a group of accredited investors who provide equity capital to early-stage entrepreneurial companies located in Florida. Our members are entrepreneurs and successful business leaders who have founded and built some of the nation's best companies. We have a burning desire to help others succeed. We accomplish this by mentoring and coaching those entrepreneurs in whose businesses we invest; we serve on their boards, provide contacts and assist with strategic planning." 


I discovered that the Angel's normally invest $25,000 to $250,000 individually, or up to $2 million as a group. They offer their capital seeking a return 10 times their investment. On they're site they offer online submission for business plans, however I will seek a one-on-one meeting for my proposal. Having the Winter Park Angels invest in my dreams will not only provide the capital I need for my startup, but it will also obtain a business partner. This relationship will help obtain further capital if needed and I will have a successful lender on my side.