Financing a Small Business
The vast majority of new businesses fail because of undercapitalization, according to Stewart Welch, III, a certified financial planner and author. But obtaining the necessary capital is the biggest challenge new ventures face. With 50 percent of small businesses failing within the first year of operation, banks are loath to lend to such start-ups; lenders look for at least two years of profitability before loosening the purse strings.
What are other ways to survive in the meantime? In their book Finding Money: The Small Business Guide to Financing, husband-wife authors Kate Lister and Tom Harnish provide the following suggestions:
- Microloan Programs. Available from the U.S. Small Business Administration, www.sba.gov.
- Credit Card Advances. Can be used for practical purchases such as basic home office equipment. But be careful, warns Welch. "If you're relying mainly on credit cards and cash advances to capitalize your business, ask yourself, 'if I don't have money for equipment, where's the money going to come from to service an 18 percent credit card debt?'"
- Home Equity Loans. They have much lower interest rates than credit cards, but like credit cards, can provide the benefit of consumer protection laws. However, you risk losing your home if you default, so assess this option carefully.
- Loans From Family and Friends. These loans should be handled professionally to safeguard all parties involved. Draw up formal agreements that specify collateral and spell out terms, including interest rate, payment schedule and the lender's recourse in case of default.
Source: Quicken Learning Center, www.quicken.com
For the latest research, statistics, sample classes, and more, "Like" IDEA on Facebook here.
© 2002 by IDEA Health & Fitness Inc. All rights reserved. Reproduction without permission is strictly prohibited.
- Abdominals/Core Conditioning
- Body Image
- Boot Camp
- Cardiovascular Training
- Career Issues
- Client Advice
- Client Handouts
- Coaching/Lifestyle Coaching
- Consumer Education
- Continuing Education/CECs/Home Study
- Corrective Exercise
- Disabilities and Diseases
- Fitness Handouts
- Government Initiatives
- Group Fitness
- Health Clubs/Fitness Facilities
- Inactive Market/Inspire the World to Fitness
- Industry Issues/Trends
- Injuries/Injury Prevention
- Legal Issues
- Marketing and Sales
- Medicine/Medical Profession
- Nutrition/Healthy Eating
- Personal Trainer Institute West 2013 Blog
- Personal Training
- Program Design
- Program Trends
- Research/Exercise Science
- Sample Classes
- Sample Workouts/Program Design
- Self Improvement
- Special Populations
- Strength Training
- Technology/World Wide Web
- Weight Management
- Women/Women's Health Issues
IDEA Fit Tips
|Extreme Interval Training
In this course you'll learn goal-focused intervals and over 50 dynamic exercises and drills to create extensive and intensive training formats.
|Cut to the Core
This is a raw, unedited video filmed live at the 2009 IDEA World Fitness Convention™. Cut to the Core is packed full of core-focused exercises that aim to improve the way you look, feel and live.
|September 2011 IDEA Fitness Journal Quiz 4: Plyometric Training
This continuing education quiz is an in-depth look at plyometric training. Plyometric exercises—jumping, bounding, hopping, arm pushing, and catching and throwing weighted objects such as machine balls—are movements that involve rapid eccentric and concentric muscle actions.