December 28, 2008

How to Finance Your Start-Up Business

Video from our FREE Online Business Course
http://www.myownbusiness.org
Session 9 How to Finance Your Business

Question:
"Raising start-up money is one of the great hurdles in starting a business. Would you have any recommendations or some basic do's and don'ts as to how people should go about this great challenge?"

Rod Banks
Executive Vice President, Small Business Market
Bank of America

Topics covered in this video:
Starting a business, financing, loans, writing a business plan

Transcript:
First off, before you begin to think about getting your start-up money together, you need to have a business plan. And once you put the business plan together it will help you to determine how much money you need to start your business. Once you determine the amount, then you've got to decide: where is the best place to get it? In today's world it is very difficult to go to a commercial bank–the typical bank you see on the street– for a start-up business type of loan.

A lot of first time entrepreneurs will start off by using their own personal savings or look to a friend or a relative to see if they can get a friendly partner in with them. Some people will look at putting a lien to some degree on their home. Because of the credit card boom, a lot of people today will take credit card solicitations that come out. And it's perfectly okay to take one of these low interest rate credit card offers if you manage it in a very responsible manner.

Duration : 0:1:23


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