Where get money from???

I guess more than many times everyone who is thinking of having his own business addresses this question to himself. Yes, where get money from and as much as possible, for as long period of time as possible and at as the smallest interest as possible. This is the topic I am going to discuss further. 

But first I will refer to the statement of Henritta Lake, small business correspondent on The Times, 
  “A business is like any other growing organism – forget to water and nourish it and it will quickly wither. ”

But obviously before watering you have to plant it first. That is you need finances initially for. For bootstraps it is common to have either 3F-s strategy: family, friends and fools or personal savings. There are lots of examples of nowadays famous people who started their own business from bootstrap financing; let’s take Steve Jobs and his partner, Steve Wozniak, who sold a Volkswagen and a programmable calculator to build the first Apple PC . 

Borrowings from a bank remain the most popular form of external financing. But the problem here is that not every bank will provide you with a loan or overdraft without your profitable financial statements. 

One of the most promising ways to raise capital is lending from venture capitalists, they have money you need and will supply it by using a stock in your company, and they actually share the risks, while banks will participate only if the risk is minimal. Moreover, for venture capitalists, the more the risks the higher return is expected. Business plan plays a main role here, this is what a venture capitalist wants to see, a detailed and accurate account, therefore it reflects the ability of entrepreneur to both manage and operate its business, and make the realistic decisions to ensure the success. It’s crucial not to loose the control over your business, not to pass it to venture capitalists. 

In this new environment, we have to deal with tough requirements of traditional credit sources and the incredible valuations bestowed upon successful entrepreneurial companies that go to public. Leasing, debt financing, joint ventures, research and development partnerships, mergers and acquisitions, and financing from positive cash flow are still some of the most promising techniques for raising capital . 

  Financing Growth, Grant Thornton, p.21, 1999 
  JIBS Entrepreneurial Growth (Spring 2008) Study Guide. 

  The Ernst & Young Guide to Financing For Growth., Garner, Daniel R, p.54,