Long story short, I have a LOT of experience as a web administrator, and a lot of experience in retail. I want to raise the money to do acquisitions of small ecommerce operations that output enough profit to be viable, with no underlying assets I understand I cannot sell a convertable bond as no stocks exist, but can I issue a fixed bond to gain the first round of needed capital. Rather than popular choices for funding a venture, such as VC (which has a low change of approval), angel investors, personal loans, or asking for investments from friends and family. Are there debt or equity based instruments I could use to raise the initial starting capital for a venture.
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2But do you have any experience running a business?– RonJohnCommented Jun 20, 2019 at 22:34
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I do have experience running projects, and small scale operations.– MrJCommented Jun 20, 2019 at 22:41
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Bookkeeping and "human resources"? Just as importantly (and playing Devil's Advocate) why should VC invest in you instead of directly buying those small businesses?– RonJohnCommented Jun 20, 2019 at 22:48
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He missed the third F, Fools :D– MarcoCommented Jun 21, 2019 at 7:00
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1 Answer
- Your bank account
- Credit Cards
- Personal Loans
- Friends
- Family
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This is not what I'm looking for as this is a canned answer. I know there are alternatives.– MrJCommented Jun 20, 2019 at 22:41
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1No there aren't. If you have a company, the company has equity that can be sold (which should be obvious as you're looking to buy companies). Convertible bonds are just loans that are convertible to equity (because bonds are just loans). No matter what is being transacted, someone has to actually hand you money. Getting someone to hand you money IS the hard part. So to get your hands on that money you can seek investment from or take loans from, yourself, banks, friends, family, strangers. You want to speculatively buy businesses, you want to be a VC and likely haven't realized it yet.– quidCommented Jun 20, 2019 at 22:49
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If you have a Business-plan, and the store is already working you could also get a loan from a bank specifically for the store, don't you? - This way if your business goes south you don't have to pay back the loan yourself. Might mean higher interest-rates though.– MarcoCommented Jun 21, 2019 at 7:01
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1I hallenge you to find a bank stupid enough to give you a non guaranteed loan based only on a business plan. I have no problem getting a loan on a business plan - but then I have the collateral to put up for that. Without collateral no bank do that. Maybe some government programs may (and they may do that through banks - basically the government guarantees payback, not unusual for some structural or small business startup programs)-– TomTomCommented Jun 21, 2019 at 9:07