Beverly Said:

business loan?...how can i get capital to start a business?

We Answered:

I don't know what domain you're planning your business in, but mostly its only the internet startups which have a very low entrance hurdle in terms of capital. Otherwise its not really practical to save for your startup with the monthly salary of even a decently paying job. If you have a good business plan and can show your potential, you can get some angel investor for funding. Bank loans are another option, but be sure that a bank will be more interested in giving loans on physical assets rather than working capital.

Also, its a good idea to rake in a like minded person, probably with an expertise in another area(marketing, business development etc.), to co-found your venture. A decent personnel strength to startup is 2-4 people. This divides the load and also gets the expertise from different areas into the venture.

Prafulla Mathur
www.LetsStartUp.com

Marjorie Said:

Business Proposal question?

We Answered:

Keep in mind when writing the business proposal that you need to convince the bank to give you money for a business idea. Hence, they would want to know what is in it for them and how will you make sure that they'll get their investment plus profits back.

In order to convince them, you'd first need to concisely explain what your business is all about. Then you would need to explain how your business will make money. Back it up with stats and market reports from reliable sources. You will also need to prepare budget and marketing plans (include analysis, target markets, sales targets and strategies), so the bank has an idea of how their money will be spent.

Finally, you will also need to fill them in on who will be running the company (what are their qualifications and experiences)

Hope that helps. Check out the link to a sample proposal letter I've included in the source section below.

Ronald Said:

Business loan?...how can i get capital to start a business?

We Answered:

20 years ago, a bank would have loaned you money. Nowadays though the economy is very tight and banks don't make loans based on a few pages long 'business plan'. Investors have their own plans as well, and they will use their money to make their plans come to fruition rather than invest in a fledgling 'business'.

Owning your own business is not a 'cake-walk' or a 'walk in the park' either. Do you really grasp how much your tax burden will be ? It's really better to have a regular job and then open a business on the side in your spare time rather than go the full out 'businessman'/sole owner route.