How to Finance your Startup

How to Finance your Startup

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HOW TO FINANCE YOUR STARTUP

THE LEGAL STUFF

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This book may not be reproduced in any form without the prior written permission of the publisher except in the case of brief quotations in critical articles or reviews. Copying any part of this book for any purpose other than your own personal use is a violation of United States copyright law.

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Copyright ? 2009 by Dheeraj (Raj) Khera. All Rights Reserved. Published by Khera Communications, Inc., owners of Rockville, Maryland, USA

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HOW TO FINANCE YOUR STARTUP

CONTENTS

Chapter 1: All Financing is Not Created Equal

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Chapter 2: Personal Financing

10

Chapter 3: Business Lines of Credit

15

Chapter 4: Creative Financing Options

21

Chapter 5: Institutional Bank Lending and SBA Loans

26

Chapter 6: Angel Investors and Venture Capitalists

32

Chapter 7: Which Option is Right for You?

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CHAPTER 1: ALL FINANCING IS NOT CREATED EQUAL

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You have an innovative idea, a great business plan, as well as a team of dedicated and talented support sta in place. You've conducted the necessary research and organized all your ducks in a row. This is all part of what it takes to lay the ground work for a successful start-up venture. The next critical step is securing the appropriate nancing for your business venture.

New business nancing can be complicated, and there are a variety of approaches one can take, as well as a number of factors that can in uence success. As you start a new business, exploring the pros and cons of various nancing options is critical. Rather than settling for the rst available option that comes your way, take time to get to know the di erent facets of start-up venture nancing. This guide contains comprehensive information regarding the many options that exist for nancing your start-up venture and great tips that will help you make an educated, lucrative decision.

Learning how to get cash in hand to start your business begins with understanding that all nancing is NOT created equal. There is more than one way to nance a venture, and several fundamental factors come into play when it comes to choosing the best option.

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CHAPTER 1 ALL FINANCING IS NOT CREATED EQUAL

DEBT VS. EQUITY: THE GREAT FINANCING DEBATE

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