Thursday, July 26, 2007

Finding the money to get started

The first response after my return from vacation; it feels good to be back. The next message comes from Deborah who is in the process of manufacturing her baby product and has even recently received an iparentingmedia award. (Congratulations!) Her question:

I was wondering how one goes about finding investors. Do you need to have a well-established company before an investor will even take a chance?

When I started Robeez, my start up costs were minimal. Some leather, sewing notions, a fax machine, and I was pretty much set. I used personal finances and a business line of credit to get started. As Robeez grew, we used the profits to finance the business. While this was appropriate to my business, I know many other entrepreneurs face much larger costs to get the ball rolling.

So while I may not be an expert in the area of investment, I know of a great resource for financing a new business. Women’s Enterprise Center has a document summarizing financing options. Which one will work for your business will require some research but hopefully this will give you some ideas.

Whatever solution you find for financing your business you will need to start with a clearly defined business plan. I can’t emphasize the importance of planning enough. Starting with a solid plan allows you clearly define your business goals from day one. There are a wide variety of free samples available on the internet. Get started!add to sk*rt

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