Economy Events

Starting and Growing a Business : Important Things to Consider

So you have a great idea for a startup business and the only thing that is holding you back is your need for additional business funds. First off, start by being a wise investor yourself, by exposing you and your assets to as little risk as possible. Do not throw all your eggs into one basket, so to speak, once you decide to turn your business idea into a full fledge business venture.

Just a piece of unsolicited advice, start small, maybe as a home-based business at first. As much as possible, veer away from the notion of securing a business loan to avoid being burdened with interest expenses and other financing charges. Your initial goal is to prove the viability of your business, then evaluate other aspects that need room for improvement or expansion.

Once your startup business picks up, and shows signs of potential growth, then you will have made your startup business a venture worth investing on. That is the first thing that most most business fund providers look into when looking for a good investment product.

At that stage, it would be unwise to wait until you have raised additional funds for expanding your home business, into something that has more form and structure as a business enterprise . Your goal this time is not lose the momentum for business growth, even if you have to seek additional funding from outside investors or financing institutions.

Potential Sources of Funding for Growing Your Startup Business

 

Love Investors

When looking for outside investors, look for them first in your circle of family and friends. If there is anyone willing or interested, let them in as investors. Doing so will put less strain and money-pressure on you and your business. Agreements with love investors are after all less constricting, when it comes to repayment terms and conditions.

However, try not to destroy their faith in you, because it will do you more harm than good. Building a good reputation in handling business obligations, even with informally contracted love debts, is valuable; especially if you want to grow your business further.

Banks and Other Financing Institutions

Keep in mind that banks and other lenders often require a specific period in which you have already operated a business even with minimum success. Lenders also want to make sure that they will be investing on a venture that has great potential to pay, not only the principal but also the interests that come with financing. This is why business reputation is worth more than the dollars you earn or keep by not honoring your obligations and commitments.

SBA Microloans

If you are a member of a minority group, or a business woman or a veteran, checkout your eligibility for a microloan being extended by the government’s Small Business Administration (SBA). The SBA is actually a program that coordinates with non-profit, community-based lenders who are willing to grant loans ranging between $500 and $50,000 at a minimum interest rate and up to a maximum term of 6 years.

Still, in light of the easy terms by which microloans are granted, you have to apply for one as early as possible. There are many like you, also seeking to obtain funds for a startup business, which means it will take time before your application gets processed.

Business Capital Investors

Business capital investors are different from lending institutions because the funds they intend to infuse will be in the form of semi-fixed investment, such as having a share in the ownership of a company, usually as a stockholder or as a bondholder.

Although they have greater capacity in providing larger funds, they also want to make sure their investments will grow by taking part in the decision-making processes. In case they are not satisfied with how the business is being run, capital investors have the option to pull out their investment when deemed necessary.

How Much Savings Do You Really Need For Retirement

Are you in your 40’s and may be confused about how much you need to retire? Or the idea of ​​saving such a lot of money is too much to handle? Nonetheless, if you have a reliable plan, you still have plenty of time to save.

Know Your Savings Needs

Put as many funds into your retirement savings as possible. Should you start off saving for retirement living in your twenties, the general rule said that you could still live comfortably when you save about 10 % to 12 % of your net income. If you start at the age of forty, the general rule suggests that you should raise your savings to about 15% to 20%.

Sounds a little overwhelming? Then try to do this: instead of centering on the percentage of the actual wage you must save, consider exactly how much you really want on an annual basis on your retirement then multiply what you have in mind by 25 to end up with the amount you have to save. For example: In order to live on the retirement of $40000 annually, you will need to raise $1M for your retirement portfolio.

Savings from Investments

While a million dollars is a lot to consider, it may not always necessarily have to come from your take-home pay but it can come from wise investments. The longer the span of time your money is invested in the retirement fund, the more likely it is to grow. Need Money Now for a great investment? There are many options for you if you are considering a take-out a loan to put on an investment. Your best bet is to speak with a financial adviser.

In reality, by way of an aggressive financial savings approach, you are able to produce a $1 million portfolio within 17 to 20 years. The bottom line is that when your money is invested for the longest time, you can take more benefit from compounding interest. After some reasonable time, compound interest will help you to double or triple your hard earned money.

Savings from Side Jobs

If your job at present is not sufficient for you to save at least $1,500 to $2,000 each month, you may want to look for other ways to come up with some extra income. Consider small means to earn that extra income. For as little as $100 per week, you can raise a good amount of savings for retirement.

Future Income on Current Investments

In addition to earning more, spending less and building your $1 million-portfolio, you can also look for sources of income in retirement.

While many of us are earning more and spending less, you can still consider other sources of income while in retirement. For instance, if you have a fully paid mortgage, renting out the home for a short and long term lease is feasible. Rental income can be used to live in a cheaper rental space.

Bottom Line

There are many elders who are on delayed retirement because they may have insufficient funds or could realize unforeseen needs for retirement. Nonetheless, this could be avoided even if you are past 40 years old. While delayed retirement is not too bad, there is a myriad of ways to fund your retirement and to even earn an extra while in retirement.

STARTUP FUNDING EXPLAINED - EVERYTHING YOU NEED TO KNOW
Learne more about business and investment from this... Life of Starting a Startup - such an informative and fun to watch video. This explains the mechanics well, implementing is easier said than done. Applies to tech startups that have a ridiculously high market potential.
Scroll Up