Feb 16, 2010

Tips To Get Business Capital

Have own business is the best solution to overcome layoffs problems in the middle of world economic crisis.But, to start a business required big enough amount of capital.

The capital business divided into 3 : initial capital investment, working capital, and capital operational. And the problem is how to get that amount of capital to start your business? There are 3 ways you can do in getting venture capital, such as : 

1.  Your own capital
First obviously, if you want to open a business, you can use your own capital by taking of deposits that you have or by selling the assets that you have (ex, you can sell jewelry or other valuables assets to start your business.

2.  Borrow
Borrowing money for business is also often done by many people, by borrowing your dream business often can come true faster than waiting for your saving. But, because you get the capital by borrowing, so you really have to consider your cash flow, this is because you have to return the money you borrow whether the return on a monthly basis, six months, or maybe years. And if you borrow the money, the key that you should notice is what or how you can do to return the loan.

Tips : when you think of the way, do not be too optimistic that the income from your business have a large income at the first months, make pessimistic estimate for the first months of business because not every business will run smoothly at the first months and you must be able to assess whether the return are going to be smoothly or not later.

3.  Cooperation
So, either you use your own capital or borrowing from other person or bank, why don't you try to just work jointly with others? with do the jointly business, the risk of your business can be smaller because it shared with your friend but you also have to share the profit with your friend.

There are plus or minus from each the tips above. If you have enough money/capital to start the business then do it by yourself or follow the tips no.1 but if you do not have enough money or capital to start the business then you can do the tips no. 2 or 3. All depends on you, think it wisely before you do..

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