{ Gearing your tech needs }

How to get funds for Business and Startup

by Honey Singh on February 5, 2009 · 8 comments

In  starting any business or startup you need a lot of liquidity and cash flows for setting up office,employees and hiring technologies.But the question is in this time of recessions where to get the money?fund

The things which comes into my mind while thinking of  funds and loans are:

  • Credit. Could we pay previous lenders back as contracted? For the analysis of the credits you might have to r&d tax credit
  • Capacity: Can we afford to pay back this loan?
  • Collateral: If we don’t pay back the loan from what asset can the lender recover their principal.Take a look at the video on How Do I Finance My Business[youtube=http://youtube.com/watch?v=41zl3bTx9WU]

    Here is the list of few points where we can search for Startup Funds:

    • U.S. Government Grants. There are thousands of grants available for specific types of research. You’ll need to research and find out, but you can find a comprehensive list of grants at http://aspe.os.dhhs.gov/cfda/. The Foundation Center, http://fdncenter.org/
    • Friends and family. It is well known that when ever you are in need of money your will first search for your best friends and other family members.
    • Venture Capital. In short Venture Capitalists (VC) is a person or investment firm that makes venture investments, and these venture capitalists are expected to bring managerial and technical expertise as well as capital to their investments.Venture Capitalists look for highly profitable, very fast growing, early to mid-stage ventures. They seek almost immediate returns on their money, which often include funds from wealthy individuals and institutional investors (i.e., pension funds) looking for a high rate of return.
    • Angel (Personal) Investors. An Angel Investor is an affluent individual who provides capital for a business start-up, usually in exchange for ownership equity. Their motivation to invest is typically a blend of desire to earn a return on their funds combined with a willingness to contribute their expertise to building a new business and a sense of giving back to their community. You MUST have your research and business plan done before you approach them. Typical investments stay in the five figure range.
    • Bank Loans. Frankly, bank loans are tough for startups to acquire. Usually banks loan money to companies that are stable and profitable or whose officers have a successful business background. They’re not impossible, however. Make sure you have your business plan in order before approaching your banker.
    • Savings and investments. Depending on how much you’re looking at, you may be able to pull the amount from savings, CDs, stocks, or bonds

    In case you want to know more about Intellectual Property,Applications for financial assistance,or SR&ED tax accounting you may go for r&d tax credit.

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    { 8 comments… read them below or add one }

    1 Allen Taylor February 5, 2009 at 8:16 am

    Nice writing. You are on my RSS reader now so I can read more from you down the road.

    Allen Taylor

    2 Jim Spence February 14, 2009 at 2:02 am

    I was searching for Blogs about free government grants online applications and found this site. I am interested in your content and appreciate sites like this.

    3 Jim Spence February 16, 2009 at 10:03 pm

    Hey! While searching for Blogs about free grants government application I found your site get funds for Business and Startup | Tech Prone. Thank you for the effort you have put in.

    4 Apple Cash Fast Loan Personal April 11, 2009 at 5:07 pm

    This is such a wonderful and informative way to reach others. I Will be more than glad to share this site

    5 StartWorkingFromHome May 2, 2009 at 7:34 am

    thanks !! very helpful

    6 MakeMoneyOnline May 2, 2009 at 7:35 am

    It was interesting.

    7 Independent-Profit-Center May 2, 2009 at 7:36 am

    nice blog cheers

    8 us government grants November 17, 2009 at 9:19 pm

    The thing people don’t often realize is the fact that they have do some basic research in order to find out about grants. Many people don’t know where to start.

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