Ed Lewellen is the Senior Vice President of Talent Acquisition for Employers Edge, Inc., a company that uses its own highly successful and proven business model to improve the performance of other companies―coaching, training and developing their employees so that they can gain the competitive edge. The company also offers entrepreneurial leaders the opportunity to start their own business in the exciting and growing field of organizational development.
A highly successful entrepreneur and accomplished business leader in his own right, Ed is not only a tremendous and sought after resource for someone who is interested in becoming an Employer’s Edge Partner, but for anyone who has questions about small business ownership in general. He recently shared his thoughts on one of the most pressing issues of interest among those who are thinking about starting their own home-based or other small business opportunity or franchise, and that’s startup funding…
“One of the hottest topics I hear about as I talk about business opportunities with people is where the money is going to come from to fund their new business. If you’re considering starting a new business, then this topic has crossed your mind more than once.
“What are some of the sources that you can draw on to fund your new business? Here are some of the available options:
1) Self-funded―If you have the finances to fund your own business, that’s great! You might be naturally inclined to use your own money to do so. But, statistically, you have a better chance of failing when you do. I read an article recently that said self-funded businesses fail at the highest rate of all new businesses. It may be because there’s no accountability to someone else for succeeding. I’m not sure, but it should cause you to pause and consider other options.
2) Friends, family and fools―I learned this term from an angel investor that I know. These are the people that invest in your business solely because of their belief in your ability to succeed.
3) Start-up capital websites―There are many of these. Be sure to check them out before applying because you’ll find horror stories on the Internet about people’s credit and lives being ruined by unscrupulous people and companies that are out just to make a buck for ‘finding’ you funding sources. Be careful. Often they are sources that you could have easily found on your own, like personal credit cards.
4) Angel investors―You might think that asking an angel investor for $100,000 is better and easier than asking for $2,000,000. I have found that statement to be false. In fact, when I went searching for $1,500,000 for a startup a few years ago, most told me that they don’t go for any investments less than $5,000,000. There may be exceptions out there, but I recommend not spending too much time and money pursuing them. Also, be ready to give up controlling interest in your company if you do find an angel investor that will give you funding. Let me add this word of caution too. There are people that will tell you they have connections with angel investors and that for an upfront fee and a percentage of the funding they find for you, they will connect you with them. Don’t let your desire to find funding cloud your business sense. Most of these people make their money from the upfront fee you give them, and my bet is that you’ll never see any funding.
5) SBA―The tough part about getting a U.S. Small Business Administration load is that all of the requirements that have to be met are considerable. Depending on how much money you’ll need, you might end up having to get a loan just so you can get an SBA loan. But then, you probably won’t meet the SBA requirements!
“The initial inventory fee for the Employers Edge is only $19,950, and we offer in-house funding for up to $6,000 of that fee. This is six months financing on up to $6,000 at 0% interest. Of course, getting the funding is subject to whether or not you have good credit.
“Let Employers Edge show you how easily and naturally you can go beyond simply having a job. Let us help you every step of the way as you start a business of your very own and begin to realize the unlimited potential that lies within you!”