Entrepreneurs in Nevada and elsewhere will need to know where they will get the capital needed to operate their companies. One option is to fund operations with a credit card in the owner’s name. Ideally, the credit card will be used to buy materials or other costs that will be covered when a job is completed. Another option is to ask family members or friends to loan money or buy equity in the business.
Adding a trusted person as a partner could be a good idea if that person has a business background. Otherwise, it may be better to simply borrow money and repay it in regular installments. This can prevent another party from trying to gain control over the company based on the fact that he or she owns a stake in the business. Taking funds out of a savings account can be an effective way to get working capital with no questions asked.
Alternatively, it could be possible to sell a car or other items that have value to a buyer. The benefit of using cash is that a business owner may take fewer risks when his or her own money is on the line. If using personal funds isn’t an option, crowdfunding could help raise money quickly for companies that understand how to market their products.
During the business formation & planning process, entrepreneurs might benefit from thinking about where they will get working capital. Those who are planning on seeking venture capital or other formal investment deals may want to consider working with an attorney. He or she might be able to create contracts or other documents that clearly define the terms of any investment made by an outside party. This may prevent someone from inadvertently losing control of his or her company.
