 You have decided on your target market and have determined your market share.  Now you can determine your financial goal by basically multiplying units by share of the market (customers)  You also had to determine your start-up costs. What do you require by way of infrastructure?  Where will the money come from?

 Personal Savings  Friends and Family  Debt Financing  Government Agencies (ACOA)  Partnerships (Gourmet Burgers)  Angel Capital  Equity Financing (Dragons Den)  Venture Capitalists

 Using personal savings can be a huge sacrifice, but conveys a high level of confidence in the business.  Personal savings allow the owner to remain in control of profits and decision making.

“Angel Investors” are typically entrepreneurs themselves. They differ from venture capitalists in that they are investing their own hard-earned money into your company rather than that of institutional investors. They typically invest upwards of $25,000 all the way to $500,000.

 Similar to Angel Investors but VCs are private companies or owners even banking/financial companies.  VCs can ask for 25% return or even more.  VCs will want a detailed plan, involve their own financial advisors, but bring good advise and planning.

 ‘love Money” can be a great source because these people most likely believe in the venture and can give flexible debt repayment.  Positional disadvantage is hurt and strain in the venture fails.  (share holders agreements help, as well as regular reporting)

 2 or more form partnerships. Each may contribute finances.  A written agreement will be essential for all involved.  Partnerships often receive higher credit ratings if more capital is needed.

 Money borrowed to finance the venture.  Whether for start up, improvements, or to finance growth. Money paid back over time.  This is money from institutions like banks, shop for lowest rate.  Best rates go to those with highest debt to equity ratio

 ACOA lend money to venture plans because these have the potential to create jobs, develop new technologies, help the country compete in the foreign markets.  Money, advice and “matchmaking services”

 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  Which sources best fit the needs of your business plan?