Raising finance for a business, part of which will be to buy real estate and equipment, can be fraught with difficulties, especially if the entrepreneur does not as yet have a track record, no matter how good the business idea.
There are, fortunately, many avenues to explore. If an entrepreneur has a plan that involves investing in Florida real estate, the first job is to examine what the market for real estate investment is. Deciding what type and size of premises is needed, along with costs of equipment, such as computers and machinery, should be factored in at the beginning of the process. The mind can then turn to where the finance might come from.
One of the first ports of call could be family and friends for support, although this may depend on the amount of capital required. Another option, for larger amounts, is a bank. This is where the business-planning element is key to the success or failure in attracting funding. A strong, imaginative plan, but one that is based on a realistic series of development steps, is likely to win more positive responses than what comes across as wishful thinking.
For specialist support, if requiring a significant of money, venture capital companies may be interested, especially if down the line they can see the potential for high returns. This is where the entrepreneur should think carefully and try to retain control of the business rather than agreeing to share a large amount of equity and, potentially, losing control at a later stage.
