View Single Post
Old 05-02-2016, 11:17 PM   #3
Bend it like Bourgeois
Franchise Player
 
Join Date: Oct 2001
Exp:
Default

Business finance is tough to generalize.

I'd start with a few questions
Are you creating something (tech, product, service, method)
How fast do the business/finance needs scale?
What industry is it in (obviously some retail presence but a pet food store and a fitness studio are very different)

There are no wrong answers, but it changes who might be interesting in financing it and how.

With no time in business access to bank capital will be tricky. A lot will depend on the capital you can put in to the business and your personal financial situation. A bank can't use some of your personal assets as any kind of security, and really doesn't want any of them, but with no track record they will probably want to make sure walking away is not easy.

Equity can work if there is someone close to you or who understands the biz to help stake you. You might need that anyway for the initial capital to have a decent balance sheet. Getting outsiders money is harder if you can't dangle a carrot of big growth or returns.

Leasing equipment will depend on what kind it is. OMGs dump truck is a great example of where it works because finance guys can understand what it costs, how it generates cash, what it's worth over time etc. Anything specialized, or smaller, or more like furnishings can be harder without existing cash flow or a vendor lease.

There are definitely grant and loan programs that can help, depending on your circumstance. Futureprenuer has good terms for younger startups, for example. Alberta has a voucher program for tech, and a new investment tax credit for equity investors in certain industries, and community futures which you know. There are more if you are in ag related business or manufacturing or exports. Crowdfunding can sometimes be an option too.

Don't be afraid to talk to been there done that entrepreneurs. If you are competing they might not be as friendly, but most are happy to share what they have learned the hard way.
Also talk to some lawyers and accountants who work with businesses like you hope to build. Good ones are worth every penny, and again many are happy to chat. They will have seen the outcome of lots of smart, and not so smart, ways companies got started.
Bend it like Bourgeois is offline   Reply With Quote