In order to raise capital, you should have a viable business plan. Guidance on writing a business plan may be obtained from a variety of sources—such as a business consultant, accountant, lawyer or even a business school. Free or low-cost assistance on writing a business plan can be obtained from various public and private institutions. Your consultant can give you extensive information
on these issues.
You may want to check the U.S. Business Advisor Web site (www.business.gov/
busadv/maincat.cfm?catid=18). Furthermore, the Small Business Administration (SBA) provides extensive information on writing a business plan on their Web site
(www.sbaonline.sba.gov/starting/indexbusplans.html).
On the internet, various institutions offer guidance and services regarding business plan-writing. The
Center for Business Planning (www.businessplans.org/business.html) is one possible source for information. Consult your favorite search engine to find out further sources.
In New York City two offices of the New York State Small Business Development Center (SBDC) are located. The SBDC offers general guidance for small businesses covering various issues and holds seminars throughout New York State addressing start-ups and emerging small businesses. Seminar topics include business plan-writing, incorporation, financing and other issues. On the SBDC Web site
(www.nyssbdc.org) a searchable directory of upcoming seminars is available. You may want to contact your local SBDC offices directly. They are located at Baruch College and Pace University.
| New York State Small Business Development Center – New York City Offices |
Pace University
One Pace Plaza
New York, NY 10038
Tel.: 212-346-1900
Baruch College
360 Park Avenue South
New York, NY 10010
Tel.: 212-802-6620 |
You should be prepared to answer questions from banks, venture capitalists and other potential investors on matters such as:
- personal guarantees
- assets and liabilities of your business
- sources of revenues and profits
- projected income and looses
- credit history (both personal and business)
- any other questions bearing on your ability to pay back the loan or other investment.
For a bank loan, you will be required to put up collateral in the form of personal or business assets and/or guarantees, and you will need to show revenues or orders sufficient to generate revenues. You will also need to show a positive credit history, both personally and in your business. A venture capitalist will examine these and other issues and complete thorough due diligence on both the business and management team prior to making any investment.
| Establishing Credit in the United States |
Most banks in New York City have small business advisors that can help you find out the best options for you to establish credit in the United States.
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| Sources of Funding |
A business operating in New York City may pursue a variety of funding sources. The availability of these sources will depend on the strength of your business and its ability to generate revenues and profits, the credibility of its managements, and the ability to execute the business plan. Depending on the type and size of the business, sources may include:
- loans from public sources
- loans from private banking sources
- loans from other types of investors, such as friends, family or “angel” investors
- venture capital
- a combination of equity and debt financing.
| (Equity financing means financing by which the investor takes an “equity stake” – i.e., ownership share – in your business. Debt financing refers to financing in the form of a loan, whereby the lender does not take an equity stake but relies on repayment of the loan amount plus interest.) |
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Federal Government Sources of Financing
State Government Sources of Financing
Local Government Sources of Financing
Local Banks and Finance Organizations
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