Finance for entrepreneurs

The secret to startup success is not to tap into the best source of capital,
but rather to tap into every source of capital.
Michael Dell

True words indeed.

Successful entrepreneurs study every conceivable source of capital--even the seemingly boring stuff like factoring. They then creatively cobble together a diverse mixture of financing techniques to kick-start their venture. Oftentimes this strategy calls for molding the business model to fit the financing available rather than trying to fit the financing to the model. This calls for genuine flexibility on the part of the entrepreneur. However, it's far better to make progress by adapting to what's available then to stubbornly wait for something that is not and may never be.

Many of the most successful entrepreneurs have demonstrated this flexibility early on in order to achieve traction. Jeff Bezos, Michael Dell, and Henry Ford are just a few of the many entrepreneurs who adapted their business model to utilize cash floats when investor capital was unavailable or undesirable. Cash floats are a sophisticated method of creating startup financing "out of thin air". They utilize many different funding techniques to marshall the necessary startup financing.

While the unsuccessful rookie grows more exasperated by the day at not being funded by an angel or venture capital investor, the successful entrepreneur is leaving him in the dust by using a cash float financing strategy.

Study cash floats and its elements. In most cases, it will be the only way that you can launch your company.

See business plans as well.

What do many of the successful companies of the past one hundred years and most of the successful companies of the past decade all have in common? The answer is that they utilized cash floats as a substitute for investor capital to get started. Entrepreneurs from Henry Ford to Jeff Bezos of Amazon to Michael Dell of Dell Computers all used cash floats to launch their companies in the early days.

For a detailed how-to guide on successfully using cash floats in lieu of investor capital to launch your company visit The Smart Startup.

Good introduction to accounting policies and procedures for startup companies from a major accounting firm. Article.

Instead of buying equipment, you lease it -- you contract to pay a monthly rental fee to use it. Equipment leasing is available for all types of equipment from major manufacturing equipment to smaller equipment, such as computers. Equipment leasing financing is available from banks, finance companies and from equipment manufacturers or retailers. Article

A bank line of credit secured by your inventory. This makes the cash you have tied up in your inventory more available to you. Article

6. What's a factor and why are they a source for working capital?

If your business accepts credit cards, you are "factoring" in an indirect manner. When you accept a credit card, you also pay a fee to the credit card company/bank. In exchange for getting the money wired immediately into your account, you have "sold" your invoice to that credit card company for a discount. Article

7. Venture Leasing

"Venture leasing" is a creative vehicle that allows start-up companies to finance certain infrastructure and equipment needs. The practice has financial advantages, but it also carries some risks. This article explains what venture leasing is and how it works. Article.

The five financial decisions you must make before starting a business.

9. The Best Startup Guides for Entrepreneurs

There is nothing smarter than learning from the successes and mistakes of others so that you do not waste time "re-inventing the wheel". The AVC Smart Startup Guide teaches you the startup strategies and tactics of the founders of America's fastest growing startups, the "Inc 500". Most of these highly successful companies were launched without outside capital. "It can't be done!", you say? Well, here's proof positive that it can offered in a systemized manner you can apply to your own startup.

Click here for the details.

10. Credit Card Tricks for Small Business Owners

How small business owners can get more out of their credit cards.

11. The New Bankruptcy Law

Under the new bankruptcy law set to take effect in October 2005, penalties for people forced to declare bankruptcy will be even harsher than in the past.

12. Loan Sources