Page 12 - THE NOTICEBOARD AUGUST EDITION 61
P. 12
Page 12 August, 2020
STARTING A BUSINESS? ........Read this .....
Continued from pg 11
3. Fund your business
It costs money to start a
business. Funding your
business is one of the first
— and most important —
financial choices most
business owners make.
How you choose to fund
your business could affect
how you structure and run
your business. Fund your business yourself
with self-funding Get venture capital from
Determine how much
O t h e r w i s e k n o w n a s investors
funding you'll need
bootstrapping, self-funding Investors can give you
Every business has
lets you leverage your own funding to start your
different needs, and no
financial resources to business in the form of
financial solution is one
support your business. Self- v e n t u r e c a p i t a l
size fits all. Your personal
funding can come in the investments. Venture
financial situation and
form of turning to family capital is normally offered
vision for your business
and friends for capital, i n e x c h a n g e f o r a n
will shape the financial
using your savings accounts. ownership share and active
future of your business.
With self-funding, you role in the company.
Once you know how much
retain complete control over Venture capital differs
startup funding you'll
the business but you also from traditional financing
need, it's time to figure
take on all the risk yourself. in a number of important
out how you'll get it.
Be careful not to spend more ways. Venture capital
· Self-funding
than you can afford, and be typically:
· Investors
especially careful if you · Focuses high-growth
· Loans
choose to use tap into companies
retirement accounts early. · Invests capital in
You might face expensive return for equity, rather
fees or penalties, or damage than debt (it's not a
your ability to retire on time loan)
— so you should check with · Takes higher risks in
your plan's administrator exchange for potential
and a personal financial higher returns
advisor first. · Has a longer
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