Start Up Funding Ideas That You Might Never Need! Read To See Why.

If you think that you need start up funding to make significant initial investment in your new business, please read the second part of this article.

1. If you think that you do need funding, here are some tips:

There are several kinds of start up funding available.

The most common is the entrepreneur using their own savings to get their business going. Or using cash from their credit cards or from a home equity loan. The benefit is that the entrepreneur doesn't have to worry about investors looking over their shoulder or disappointing friends and family who may have provided the funds. The disadvantage is that if the business fails, the entrepreneur's home may be at risk or savings lost.

A small business loan is often used to purchase equipment, supplies, and inventory to get the company going. If the entrepreneur has a good credit history and a relationship with a bank that does business loans, the money can often be obtained with a simple application form. Unfortunately most banks require that unless the loan is personally guaranteed the business has to have been operating profitably for at least two years. Banks look at two factors: the risk in not getting the principal paid back and whether the company can generate enough funds to pay the monthly interest. Bankers are not interested in the growth potential of the company.

Venture capital is glamorous and gets lots of press. The reality is that it is difficult to obtain and very few start up businesses actually are successful in obtaining venture capital. Less than 20% of the venture capital invested is invested in early stage companies. The average venture capital funds invested per company per investment is nearly $10 million. Very few of the 600,000 businesses started in the United States and 400,000 in the United Kingdom each year qualify for venture capital. Less than 1% are appropriate for venture capital.

Angel investors or private individuals who invest in start ups, is another alternative. Angel investors usually invest in high tech companies that have the potential to quickly grow and return that investment at the end of a three to five year period with at least a ten fold return. In other words if the angel invests $100,000 in year one they expect to get $1,000,000 at the end of three years. Private investors sometimes work together in groups called Angel Networks. You can find Angel Networks in your area by talking to your local Small Business Development Center Office, local chamber of commerce, or searching through local newspapers, and of course through search engines.

Vendor financing and store credit are two more ways to find money for a start up company. Vendor financing is when the vendor you buy your supplies from gives you from 30 to 90 days to pay. Even if the vendor doesn't offer payment terms you can ask for them and in return offer a 1% or 2% premium. You might be able to stretch out the payments for up to six months, with the vendor's permission of course. Store credit is available for most businesses, even new ones by completing a store application. This can be helpful to buy office supplies and even computer systems.

Start up funding is available to start a business but it isn't always easy to find.

Dee Power is the author of several nonfiction business books. Find out more about startup funding or visit the Capital-Connection website.

2. Why you might never need to raise startup capital and just use your $10K savings.

You think "boy, what can I do with $10K? The marketing itself will cost more.

Well, yes and no. It depends what and how you market, and who your distribution and media parters are.

You definitely can get away with $10,000 if initial investment and build a business empire if you will design the product and market your business with a model that utilizes power of B2C and B2B affiliate marketing.

No, I don't suggest you to become an affiliate for other companies. Well, you can if you choose to. But I suggest you to imagine yourself on another side of the spectrum.

I suggest you considering developing the web product that can be sold through an army of large online publishers.

Yes, there is a lot to this business model that you have to learn about and take into consideration.

You cannot do it alone. Fine a partner who can be with you on every step.

- idea brainstorming

- product development

- mass marketing

- business operation

And yes, your $10K will be sufficient if you find a product development and marketing company that owns an affiliate network, and therefore - publishers.

I suggest you to consult with a team of IdeaMama Group - then have an advertising network (IdeaMama Ad Network) that can become a great mass marketing vehicle for your new business.

Let me know when you become a multimillionaire. And yes, it's absolutely feasible.

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