How to Write a Business Plan

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4 C hAp t e r Potential Sources of Money to Start or Expand Your Small Business Introduction ................................... ...

50 | HOW TO WRITE A BUSINESS PLAN Economic Development Administration (EDA) .................................................... ...

ChApter 4 | POTENTIAL SOURCES OF MONEY TO START OR ExPAND YOUR SMALL BUSINESS | 51 Introduction ................................ ...

52 | HOW TO WRITE A BUSINESS PLAN As for the manner in which loans are repaid, there are about as many variations as there are l ...

ChApter 4 | POTENTIAL SOURCES OF MONEY TO START OR ExPAND YOUR SMALL BUSINESS | 53 Secured Loans Lenders often protect themselve ...

54 | HOW TO WRITE A BUSINESS PLAN Unsecured Loans Loans without collateral are called “unsecured” loans. The lender has nothing ...

ChApter 4 | POTENTIAL SOURCES OF MONEY TO START OR ExPAND YOUR SMALL BUSINESS | 55 sincere person. At least as many businesses f ...

56 | HOW TO WRITE A BUSINESS PLAN the promoter, may get as little as 25% of the profits plus a reasonable salary for your work t ...

ChApter 4 | POTENTIAL SOURCES OF MONEY TO START OR ExPAND YOUR SMALL BUSINESS | 57 • Limited Liability Companys (LLCs). LLCs ...

58 | HOW TO WRITE A BUSINESS PLAN Corporations and Red Tape Corporations bring several complications— but most entrepreneurs con ...

ChApter 4 | POTENTIAL SOURCES OF MONEY TO START OR ExPAND YOUR SMALL BUSINESS | 59 Loan advantages. The lender has no profit pa ...

60 | HOW TO WRITE A BUSINESS PLAN I recommend never financing a business with only borrowed money, even if it’s possible. If you ...

ChApter 4 | POTENTIAL SOURCES OF MONEY TO START OR ExPAND YOUR SMALL BUSINESS | 61 more appropriately be called “Borrowing from ...

62 | HOW TO WRITE A BUSINESS PLAN particularly important for new businesses. If you arrange credit and can only pay a part of yo ...

ChApter 4 | POTENTIAL SOURCES OF MONEY TO START OR ExPAND YOUR SMALL BUSINESS | 63 Your Money Machine Here is a task you can sta ...

64 | HOW TO WRITE A BUSINESS PLAN in them as collateral for a loan. Remember, collateral is something you own that you give your ...

ChApter 4 | POTENTIAL SOURCES OF MONEY TO START OR ExPAND YOUR SMALL BUSINESS | 65 pay interest to account holders to attract de ...

66 | HOW TO WRITE A BUSINESS PLAN exAmple 2: To continue this story, let’s assume that at the end of the first year, Ms. Pertz- ...

ChApter 4 | POTENTIAL SOURCES OF MONEY TO START OR ExPAND YOUR SMALL BUSINESS | 67 Venture Capitalists A venture capitalist is a ...