Where do I get my money from????

(13 /09 /2013)

This has to be one of the most important and frustrating parts of the whole process to the finish line. There are many ways to finance the venture either by a business loan from a bank, private investors, and leases for the equipment which have tax advantages or family/friends.

Quick review;

1. I want to start with family and friends. Avoid this if you can. Family and friends don’t mix in business; I have seen whole families break up over failed businesses; friends become enemies and so on.

2. Your super is for your retirement. Don’t use this as a start-up; over and over I have heard stories of parents surrendering their super funds for the kids who have that romantic idea to start a restaurant just to see all their hard earned money fly out the window.

3. With your business plan and your numbers approach the banks; unfortunately this industry doesn’t have a good reputation with the banking industry, with the high failure rate on record. Generally they require bricks and mortar as security. Again don’t ask for someone to put up their homes to guarantee the loans required. People have lost everything because they have made these commitments.

4.  Private investors are like banks and generally follow the same rules as banks

5.  New equipment is generally purchased through lease agreements this helps free up money to be used elsewhere. Be prepared for financials to be presented, business plan at the ready and a credit check done on you.

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