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Four Main Capital Resources for Start-Up Entrepreneurs

<p>Digital age is encouraging young millennial generation to be an entrepreneur instead of working in a 8-4 job instead of being an employee in a company&period; The widespread internet accesses in the world open has opened millions opportunities for everyone who want to open their own businesses&period;<&sol;p>&NewLine;<p>However&comma; opening a business is not as easy as turning your palm&period; As increasing business participants&comma; you’ll have to be mentally prepared to face various business challenges&period; However&comma; the main thing usually underlie a business beside your decision about your business concept and market segment&comma; is capital&period;<&sol;p>&NewLine;<p>Once your concept is clear&comma; you should begin to think about the needs of venture capital&period; You can start from what you have right now&period; Here are some types of capital resources that you can consider for your business pioneering &colon;<&sol;p>&NewLine;<h3>1&period;Own Capital<&sol;h3>&NewLine;<p>The biggest advantage of using your own capital is that you’re not tied to any party in developing the business&period; Nobody would interfere or veto your ideas and decisions&comma; so you can freely explore and develop your own business without having any obligations to make a progress report to other parties&period; sides&comma; you don’t have to share and deposit you profit to other accounts&period;<&sol;p>&NewLine;<h3>2&period;Capital of Relatives<&sol;h3>&NewLine;<p>You can take advantage of your networks as you can get soft loan without interest to increase your capital&period; It’s interesting as you can still have benefit like your own capital as the loans of relative of good friends doesn’t mean that they’re getting involved in your business&period;<&sol;p>&NewLine;<p>However&comma; this type of capital is usually limited as most people won’t lend money in large number without any collateral&period; The trick is that you simply borrow to more than one friend or family&period;<&sol;p>&NewLine;<h3>3&period; Joint Venture Capital<&sol;h3>&NewLine;<p>When you’re facing the lack of cash and difficulties to get any loan from your relatives&comma; you can hold friends to join venturing the capital of your business&period; This makes your relatives or friends as shareholders&period; You should pay attention to the distribution of rights and obligations to avoid potential conflicts as well as you’ll have to full open about your steps and progresses&period;<&sol;p>&NewLine;<h3>4&period; Bank Capital<&sol;h3>&NewLine;<p>This steps can be taken only if your recent business has been in development phase and running for at least one year&period; Bank will only finance the businesses that has been running shoe some promising development&period; However&comma; some Bank is developing different policies&period; It’s very important to do an accurate calculation as you have to pay some interests from your loan&period;<&sol;p>&NewLine;

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