Nearly everyone who is asked will have a different idea of the best way to start a business. One of the most important things that every Georgia small business formation needs is funding. No business will get off the ground without money up front. The question is where to get that money.
The simple answer is that it varies. One of the hardest decisions for any entrepreneur to make is how they want to fund their business. Using personal funds such as savings, credit cards or personal loans will ensure that the business stays “in the family,” but could also end up putting the owner or owners in a tough financial position.
Finding investors is another popular way to fund a business. On the upside, it allows the business owner access to capital without necessarily having to dip into his or her personal funds. However, this also means that the investor has a piece of the company, which can get complicated. If investor funds are used, it would be a good idea to have representation in order to make sure that the entrepreneur’s interests are safeguarded.
Still other people may be looking to grow into a formal business after selling goods or services on a small scale. If there is already money coming into the business, that money may be reinvested into the business to help it grow. This way, there are no investors to be accountable to, and there may still be money in the bank.
No matter what method of funding is chosen for Georgia small business formation, the entrepreneur needs to have a plan. There are a lot of details that need to be worked out when starting a business. Having someone to help with the details, both legal and business, can help ensure that the business gets started on the right foot.
Source: USA Today, Many ways to get a small business off the ground, Laura Petrecca, Sept. 23, 2013