One Penny Project - Make Money Research, Testing and Reporting

Saturday, September 01, 2007

Getting Money To Start Your Business

Starting a small business requires money. If you don't have enough money to start your business then you need to convince someone else to loan you the money.

There are 3 ways to get money for starting a business. Venture Capital, Angel Investors and Bank Loans.

Venture capital is a private equity capital provided by an outside investor. More often then not venture capital is a fund pooled from multiple investors. In exchange for the money a venture capitalist will often get shares of the company. VC is a short name used for venture capitalist.

Angel investors are much like venture capitalist with the main difference being that the money is from a single person instead of a pool of investors.

Bank loans for starting a business are much like a loan for buying a house. When loaning money to start a business a bank will often as for a business plan and other financial projections. This is to evaluate the risk of the loan.

Submit Business Plan is a website that helps entrepreneurs submit their business plans to banks, VC's and investors. They have a regularly updated database of investors that you can submit your business plan to with the touch of a button.

Michael