How to Raise Money to Start A Business-1

The task of raising money for a business is not as difficult as most people seem to think. This is especially true when you have an idea that can make you and your backers rich. Actually, there's more money available for new business ventures than there are good business ideas.

A very important rule of the game to learn: Anytime you want to raise money, your first move should be to put together a proper prospectus. This prospectus should should include a resume of your background, your education, training, experience and any other personal qualities that might be counted as an asset to your potential success. It's also a good idea to list the various loans you've had in the past, what they were for, and your history in paying them off.

You'll have to explain in detail how the money you want is going to be used. If it's for an existing business, you'll need a profit and loss record for at least the proceeding 6 months, and a plan showing how this additional money will produce greater profits. If it's a new business, you'll have to show your proposed business plan, your marketing research and projected cost, as well as anticipated income figure, with a summary for each year, over at lest a three year period.

It'll be advantageous to you base your cost estimates high, and your income projections on minimal returns. this will enable you to "ride through" those extreme "ups and downs" inherent in any beginning business. You should also describe what makes your business-how it differs from your competition, and the opportunities for expansion or secondary products.