You've probably heard the term Micro-Business and Small Business, but do you know the difference? Micro-business is defined as less than five employees, including self-employed. Small-business is defined as a business with revenues between $750,000 and $35.5 million between or below 100 and 1,500 employees. These figures can vary depending on the industry. Micro businesses face numerous challenges and the lack of capital is number one! Many people believe that government grants are available to start a small business, this is false information. Capital funding will most likely come from personal loans. The SBA (Small Business Administration) may be able to assist with lower interest loans. Let’s talk Venture Capital. What is it? Venture Capital is a type of financing that helps fund entrepreneurs and is provided from high net worth individuals. Investors, commonly known as Angel Investors or Venture Capital Firms, usually require a high rate of return and most likely you will need a direct connection to even be considered for this type of funding. Recognize that starting a business is tough. It is very likely that you will be funding your own start-up, your hours will be long, and your nerves will be strained. More than half of all new business survive less than five years. Below are a few pitfalls to avoid:
Recognize that starting a business requires a determined mindset, a spirit of perseverance and a strong backbone to succeed. It is very likely that you will be funding your own start-up, your hours will be long, and your nerves will be strained. While no one wants to think about it, starting a business can be risky. It is estimated that more than half of all new business survive less than five years. In the event, your venture is not successful, take what you have learned and move forward. Last but not least, take it from someone who has been there; the journey is worth the risk!
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