Article on Financing for New Business

Is there anything more troublesome to a new business than financing? I think not.

I have seen some good businesses go under because they lack finance. I have seen people with good ideas unable to get them off the ground from the lack of finances.

Since my interest lies in my business clients being able to get their business started and/or keep their business running, I pay attention when I see articles like New Business - Trading Equity for Cash.

If you are starting a business, guard your equity at all costs. Selling equity should be a last resort. Try to get loans or trade profit sharing in lieu of selling equity. If you must sell equity, do so only in small percentages. You do not want to the small business person in the example above.

The article contains practical advice on financing problems and is worth the time to read.