How to Get Start-Up Business Financing

Video Transcript

"Finance startup for a business when you're just getting started is one of the most crucial areas to consider. I'm Clayton Christopher, founder and CEO of SweetLeaf tea company. So, when you're starting your business, cash is key. There's a variety of ways to get a hold of cash to start your business, buts it's absolutely something that is almost impossible to start your company if you don't have any cash. You can raise money from friends and family, sometimes you can go get a bank loan. Although that's really difficult to do when it's a startup business unless you have some sort of collateral like a house or cars that you have equity in. Credit cards, personal credit cards are a big way to finance your business when you first start. But, you have to be willing, I feel like you have to be willing, to do whatever it takes to get your company started. If you believe in your business and the idea enough to start it then you should be willing to put a lot of risk on the line, you should be willing to finance that with credit cards, do reverse home mortgage and any equity that you have in your home. So, there's a number of different ways to do that. Raising money is another way too. To go to friends and families, to go to outside investors and a business plan becomes very important. If you're going to do that then you really need to determine what you think the idea is worth and how much will some investors money buy them in your business. So, lawyers are really good. There's plenty of legal assistance to get advice if you're going to bring money in from outside investors. A lot of things to consider, but I definitely think that whoever starts their own business needs to have a good chunk of their own personal net worth in that company whether it's through debt and credit cards or whether it's through savings. This is Clayton Christopher talking about how to finance a startup."