Steps for Researching the Right Investment
Unless you’re lucky enough to have access to your own capital, starting out in business often means looking for outside investment. There are many options available – from government grants to angel investors – and it’s tempting for fledgling businesses to take whatever they’re offered. But there’s a lot to be said for researching potential sources in terms of what they want, where they’re based, and who they’ve already invested in, before you decide on your target.
If you choose not to apply for a bank loan, one of the first steps you should take is to look into grant funding. Free support is always worth a bit of research – in particular, check if there are limitations on what how the money is used, to ensure you can still go ahead with your business plan. National and regional government websites will offer more information of the type of grants and their stipulations.
You have a business idea and want to leave your conventional workplace to start a new business. Not many people make such a leap, especially because of the huge investments and funds needed to startup a business. Luckily, finding funds for your startup can come from several sources. One popular source is through your home’s equity. However, you need to consider the advantages and disadvantages of utilizing your home equity for your startup.
Funding Small Business Growth with Individual Retirement Funds
There comes an inflection point in nearly every stage of small business development where growth stagnation is inevitable except for the infusion of some form of capital, human or otherwise. Unfortunately, such inflection points can also be extremely time-sensitive as in, “we need for growth and we need it now!” The recent credit squeeze has also been detrimental as small businesses have been hurt the most by dried-up liquidity in financial markets. Luckily, there are a number of ways to tap existing funds, including using retirement funds as a method for funding small and medium businesses.
Self-Directing Retirement Accounts
While the more complex structure of self-directed IRAs and solo 401(k)s have existed for many years, the rapid mainstream acceptance and affordability of such accounts has only materialized in recent vintage. Unlike a traditional IRA, a self-directed IRA takes administrative control out of the hands of the IRA custodian and gives it back to the account holder. This means investors are free to invest in products other than stocks, bonds, mutual funds and money market accounts.
Recent Comments