Do You Need Venture Capital? - Exploring Your Options

If you're starting a business from scratch, financing that business is probably forefront in your mind. All business owners dread the thought of raising money. In fact, for many small businesses, it means humbling oneself to the point of begging at times. Borrowing money and getting investors to listen isn't always easy, especially if you don't have much to start with.

For many venture capital spells fear; the fear of the lender ending up controlling the business owner and the company. Old ways of doing business don't work as well now. You have to consider many things when going into business and the main one is where are you going to get your cash flow for the first year if business isn't good?

Should I max my credit cards to invest in my business?

Many young people and businessmen are avoiding looking for venture capital and are instead using their own means. If you have little to no money to start with, you might be tempted to max out five credit cards and get a $50,000 cash flow going. Keep in mind that this isn't free money. You eventually have to pay the reaper and if you haven't done your homework lately, credit card interest rates are out the ceiling these days! Plastic is a dangerous means of investing in a business. One financial reporter put it well, "Credit cards come with new pitfalls. Interest rates obviously are higher. Card issuers have also been quietly adopting new billing tactics such as two-cycle billing, which tacks on interest between the purchase date and the billing statement. And President Bush last year signed a bankruptcy reform law that was lobbied for by credit card issuers. The law makes it more difficult to retire credit card debt in the event of a bankruptcy." (Inc.com)

Who stands the best chance of getting venture capital?