H-F-L-Team: Partnerships A Way to Fund Your Business?Copyright © Douglas Miller Hundred-Fold-Life
http://www.ClixGo.comFinding money to start a new business can be a job in itself and without many assets that can be used as collateral can be nearly impossible. Many people believe that the only ones who are approved for business start-up funding are those who can show they really do not need it. Banks and other lenders are not going to issue loans for a new business unless it can be proven they are going to get their money back.
A thorough and well-thought out business plan is a step in the right direction, but if there is even a slight doubt that the loan can be repaid on time, the majority of lenders are going to turn down most proposals. Many successful businesses tell stories of how they got their business off the ground by maxing out their credit cards and were near bankruptcy before they started making any money. As appealing as the idea of starting a business without going into debt may be, it may not always be possible.
So how do you get started on the road to obtaining your Hundred-Fold-Life?
One method of obtaining business funding is through the use of partnerships that promise to return the partners' investment based on the success of the business as opposed to a strict timetable. While the persons who join in a partnership for a business start up need to understand there is a good chance they are going to lose their investment, they can also realize they may stand to make a decent return on their money.
Essentially, a partnership collects money from all interested parties, based on the viability of the company's business plan. There should be an established target of how much money it is going to take to get the business started and then partners put up a percentage of the money. For example, the company is going to produce and sell widgets, the much maligned but very necessary staple in most households. The plans shows the need for $10,000 and 10 people each put in $1,000 to complete the funding.
The plan also shows the widgets will cost $6 each to produce and they will sell for $10 each. The plan states that the first dollar for every widget sold will be returned to the investors on an established schedule, for instance every quarter. Each investor will receive 10 percent, or 10 cents for every widget sold, which translates into 100,000 widgets being sold for the initial investment to be paid off. The time it takes to sell the first 100,000 will need to be outlined in the business plan to make the offer attractive, but the investors will also know that their money will keep coming in long after the initial investment has be recouped.
They key to staying on the good side of any partner is to be completely honest and up front about the prospect of making their investment pay off. Many may be willing to wait up to two years before recouping their investment while others may want more input into how the business is operated, hoping to insure they get their money back in a timely manner.
I have also helped people start their businesses in a similar manner. I have provided them with “supplies” so the go out and get started with the promise of a return of the same “supplies” retuned when the start making a profit. This is different because I did not make a upfront return but what it did do was increase my business because we are with the same company were it was mutually beneficial for the both of us to succeed.
Getting to the point of fully living your Hundred-Fold-Life may take different twists and turns and with the help from others. My personal litmus test for who I enter into a business partnership is “Would I have this person over for dinner with my family? If the answer is “No” then the I do not partner with them.
About the Author:Douglas Miller is a retired Fire Service Captain now making a living working at home. His company Hundred-Fold-Life is not just a name but also a belief.-----------------------------------------------------------------
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