Saturday, October 31, 2015

How to Look for Startup Money for Your Computer Business (part 2 of 2)

Angel investors.  Angel investors are individuals that like to invest in business startups.  If your business focuses on computers and technology, you're in luck.  Most of these private individuals like businesses that offer high-tech solutions because they have the most potential for rapid growth.  Many of them work as a network.  You could get in touch with them through your chamber of commerce, a small business development agency in your area, online or through ads in the papers.

Bank.  Banks can offer you a variety of loans to suit your needs, whether you require money to purchase inventory, supplies, equipment or real estate.  Check your local bank for the types of loans available to a startup business such as yours.  A loan officer can guide you on what you need to know – requirements, qualifications, amount of money you can loan, payment terms, etc.

Depending on the type and amount of loan you want, a bank may also require collateral from you in the form of personal assets.

Support your venture with a business plan.
Unless you can find someone to loan you the money for your computer startup business, you will need a good business plan in order to obtain a loan or grant from most lenders.

If you're planning to talk to a bank or a state funding agency, you will have to be able to show a business plan.  For one, most lenders will require a business plan and for another, you'll need this to help guide you on how much money you will need for your business.  Without a business plan, you could either ask for too much or too little, which, either way will not be helpful for your business.

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