Funding Advice For Young Entrepreneur

Discussion in 'Articles & Tutorials' started by bytrade001, Oct 8, 2011.

  1. bytrade001

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    Jan 6, 2011
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    here are some of the ways to get fund for The Young Entrepreneur1) Fund yourself. Easy enough right? Truth is I put everything I had into the store, I cashed out my mutual funds and emptied my bank account. This is an obvious choice.

    2) Hit up friends and family. I bought some light up signs at an auction in Maryland and my parents drove them up to me, that normally would have cost shipping and such. I borrowed 5K from a friend. If you have a solid plan and a repayment schedule your friends and family will have faith in your idea.

    3) SBA Loan. Here's where I got the bulk of my money from. I went to the local Small Business Development Center (SBDC)and worked on a solid business plan for over six months and submitted all the paperwork and next thing you know I had over a 100 grand in startup capital.

    4) Lines of Credit. I got lines of credit for everything from magazines to concessions to DVDs. If you get a tax number and open lines of communication then more than likely a company will extend you a line of credit.

    5) Bank Loans. After I got my business up and running I got a small loan to continue operations. All I needed was my taxes and quickbooks file and they extended me 10K to continue operations.
  2. JPM

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    Jan 10, 2011
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    I appreciated this does help the cash flow for a lot of business' but I'm really not a fan of going to friends or family for a loan of any kind, especially not for a business idea. I would prefer to keep family and business separate.

    Is number 4 really a good idea? Lines of credit can be useful, but most of the things you mentioned are nothing to do with business but more personal and in most cases would be classed as luxury items. Honestly, it's not a great idea to run up this amount of credit all at once (IMO)

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