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Is Funding Really that Important?

    • 50 posts
    September 28, 2012 7:19 PM EDT

    If you run a small business then you will be looking for funding at some point. In my opinion, a business without a funding source will flounder under the weight of its own debt.

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    Invoice Factoring

    • 68 posts
    March 27, 2012 10:29 AM EDT

    Testing a startup idea online is a smart and inexpensive way to see the potential demand. Its a great way to see if there are customers out there in need of a solution....so building lists etc is a legitimate way to start but online marketing other people's offers is not starting and growing your own business - unless your business is either information marketing or affiliate marketing.

    For any other kind of business creation there will likely come a time where funding would help the business move from bootstrapping and perhaps a handful of people to a business with more infrastructure that can really tap into a significant opportunity.

    At this point you might say "but can't you outsource it all?" - again, for a service or real product business - having more control over consistent quality and delivery ofte requires having more control over the assets of production and whether or not to outsource becomes a strategic question. Either way, modest growth can be turned into significant growth if you take funding and really seize the market opportunity by scaling the business - be that people, facilities, tools, new product, marketing, sales staff, advertising etc.

    These points are relevant for physical product, retail or service companies - less so for information marketing businesses....your proposed approaches work best for IM, less well for 'real' businesses.

    Andrew

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    http://www.TheFundingGuru.com/QuickQuestion/

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    Andrew PS - Here's a free report on creating your startup success. Free report

    • 28 posts
    March 28, 2012 2:30 AM EDT

    Funding is really important so that they have better money future...

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    Personal Finance | personal finance tips

    • 28 posts
    March 29, 2012 1:34 AM EDT

    I have come out with this this time..

     

     

    Funding is one of the most important thing tht you need to notice. If you start funding you should know it's importance. I have come witj all the major importance of funding. here they are.:

     

    1. Seed Money.

     

    2. Cash Flow.

     

    3. Expansion of your cash.

     

    4. make better money for budgeting.

     

     

     

    Hope this might have helped. if there are experts who knows moren then this, then plzz tell us about it.

     

     

     

    thank You

     

     

     

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    Personal Finance | personal finance tips

    • 9 posts
    March 28, 2012 6:45 PM EDT

    Funding sources in general include debt and equity financing. A debt can be a business loan or a business line of credit from a bank or a non-bank financing company, or funds secured directly from investors through issuing short-term or long-term debt securities. Any additional, outside equity may include funding by venture capital firms, private equity funds and individual angel investors, normally before any public stock offering.

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    Factoring Service

    • 16 posts
    March 30, 2012 11:45 PM EDT

    That would be a good idea!  

    • 86 posts
    March 27, 2012 4:27 AM EDT

    I want to know why there are so many people looking for funding.

     

    I don't believe in raising capital anymore... unless I were to start the manufacturing, production and all other things myself... which I wouldn't because I would just license the ideas so someone else could do the work. 

    Real estate investment is also a different story.  That is purely an investment and not a full-time operating business.  That's another thing I will get investors to go in  on. 

     

    BUT when it comes to businesses...

    I would rather TEST my ideas by building email lists, online and offline (going to tradeshows and networking events) and then sending them offers to see what their levels of interest are. 

     

    I want to know what all of this funding is for. 

     

    So what are you guys getting funding for?

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    • 86 posts
    March 27, 2012 1:16 PM EDT

    I kindof understand. 

     

    But in "real" businesses, I've always sold something before I had to create anything.  For instance: Websites, or landscaping. 


    When my first partner and I started we got money before we put anything out on tools and equipment.  We also didn't pay anyone out until the jobs were complete. We first checked the responses in the neighborhoods and then went to work.

     

    It's different in retail, but I don't think it has to be.  I mean you can still go to networking events around the city with a handful of products and test them. Even services.  Throw up a trade show booth and collect names for a project that is cool. 

    Again with products, if you're in love with the product, I guess you might want control  over it but I think in terms of "If I think of 100 ideas per year" and I put provisional patents on 10 of them and try and sell them to companies, I might get 5 licensing deals paying me royalties and they can manufacture the products.  It's easier and much less time and capital intensive.  ... not easier, but different.

     

    I guess I just don't believe in funding for start up businesses.  I haven't given money and I don't ever see myself doing it. 

    I see people start new restaurants and shops and service businesses all the time.  They go out of business very quickly and then they have to negotiate with the bank or go bankrupt.  

     

    I completely agree with you about funding for growth.  Putting money into a proven system is like gas on a fire but not for starting.

     

     

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    If you feel out of control, confused, bored or stuck in your business, go to www.millionairementorsaccess.com to claim your free gift!

    • 86 posts
    April 3, 2012 9:22 AM EDT

     I question it because I've been able to successfully test my business ideas for under $1000 each time.  I have contracts that limit my financial losses and if I don't have buyers BEFORE I start, it's not a good business for me to be in.  

     

    I think it's ridiculous to secure funding when you don't already have customers or a customer base.  

    Not sure why you would question the need for funding to start a business...

    Obviously, the ideal situation would be to fund a business yourself. But not everybody has the financial means to make this a reality. And some businesses require huge amounts of capital to get started (ie: equipment costs, rent, employees, etc.). You point out that many new businesses fail, but there are also tons of success stories. If people didn't take a risk and fund these companies we would live in a totally different world...



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    If you feel out of control, confused, bored or stuck in your business, go to www.millionairementorsaccess.com to claim your free gift!

    • 44 posts
    July 20, 2012 3:25 AM EDT

    Well I am also infavour of investing money or funding as it is good from your future prospective. Investment is a very well long term planning which is always help full at the time of retirement

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    • 13 posts
    April 2, 2012 5:55 PM EDT

    Not sure why you would question the need for funding to start a business...

    Obviously, the ideal situation would be to fund a business yourself. But not everybody has the financial means to make this a reality. And some businesses require huge amounts of capital to get started (ie: equipment costs, rent, employees, etc.). You point out that many new businesses fail, but there are also tons of success stories. If people didn't take a risk and fund these companies we would live in a totally different world...

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