Business Financing Solutions
This page accompanies the chapter, Funding Your Business (Money Makes the World Go Around, in the book, Hire Your Job, Fire Yourself. Here you’ll find a brief recap of the chapter, additional information, and some valuable financial spreadsheets that you can download and use for your business.
“A bank is a place that will lend you money if you can prove that you don’t need it.” –Bob Hope
Quick Legal Notice: You are free to use these spreadsheets, worksheets, and other materials for your business, but you may NOT sell them, give them away, or use them any purpose other than your own business needs. For example, you cannot tweak them and then post them as your own. You cannot use them while consulting for other clients. You cannot share them publicly or privately. In all of these cases, except private self-use, you will need to obtain permission to use this copyrighted material. And if you use this for your own private use, you must leave our copyright notice intact. If you violate this requirement, Guido, our kneecap adjuster, is very efficient in his work. He’s also a great lawyer. Also, don’t forget the general fine print that accompanies this website.
About the Chapter, Funding Your Business (Money Makes the World Go Around)
This chapter is possibly one of the most valuable chapters for entrepreneurs desiring to start a new business and for businesses struggling financially.
The book then takes the reader through the process of figuring out how to finance their business, including:
- The important financial equation of business ownership: PROFIT = REVENUE – EXPENSES
- Debt-free financing. This sounds impossible but it can be a reality for most businesses if they understand all the techniques. All too often businesses go for a loan, and don’t even consider a better way. Warren Buffet, a billionaire, is quoted by ABC News as saying, “Don’t go into debt.“
- Figure out what you need for Startup Costs. It sounds like a silly concept but statistics prove that many business owners don’t know how much funding they really need for their business. There is a spreadsheet below.
- Figure out what you have (Your Net Worth). You might have a lot more financial options than you think. There is a spreadsheet below.
- Sources of Startup Funding. This is the meat of the chapter. Eachsectioncontains very valuable ideas and options in these areas:
- Personal Sources of Funding
- Sources of External Loans
- Sources of Investors
- Bootstrapping Techniques. This section is very creative!
If you found this web page through means other than the book, you should consider obtaining the book. The material found in this chapter alone is a terrific ROI (Return On Investment).
Resources for Business Financing and Financial Tools and Solutions
Below is a vetted list of Business Financial Resources: (NOTE: The book does a great job of explaining each of these possibilities as well as many more. This page is where the reader can find up-to-date resources.)
- Equity Financing (equity loans, equity lines of credit,cash-outrefi’s, and examples). Remember, going into debt for your business is not the ideal solution. The book provides many other options,whichshould be considered. However, if you decide that a loanisabsolutely necessary to get your well-planned business off the ground, here are some options:
- The Lending Tree is well known for making lenders compete for the lowest rates on a home equity loan or line of credit or a small business loan.
- Loan based on the equity of your vehicle (regardless of credit score)? You can get an auto title loan online, in less than an hour through LoanMart. In California, they also offer an unsecured personal loan of $2,600 if you meet minimal requirements.
- We’re researching more options.
- U.S. Small Business Administration (SBA) District Offices
- SBA-approved Intermediary List (this opens a .pdf file)
- Peer-to-Peer (P2P) Lending resources:
- Here is a great list of P2P lenders.
- Online Financial Calculators (interest, mortgage, etc.)
- We’re researching more options.
- We’ll add this list very soon…
Below are some financial spreadsheets that you might find valuable (read the Quick Legal Notice above):
- Startup Costs
- Your Net Worth
- Video Surveillance Equipment
- Auditing Firms
- Accounting Systems with built-in security features
Do You Have a Suggestion for Something We’re Missing?
Let us know if you think of something else we should include here. Add to the Comments section below or Contact Us.