Skip to main content
  1. News
  2. Business & Finance
  3. Industry

3 funding facts start-up businesses must know

See also

Getting money to fund a start-up business so it launches and becomes operational requires planning and salesmanship.

A microbrewer in his first year told me that it could cost twice as much as what you plan. “If you think your business is going to take $1 million dollars to launch,” he said, “count on needing $2 million dollars.”


In Southern California, getting a business like a restaurant up will require it to have everything in place before it starts and before licensing will give final approval. The wait can take months in some Southern California counties. Be sure enough cash is on hand to wait for licensing approvals before transactions can start with customers.


Approach a bank that’s friendly to entrepreneurs and understands the unique needs. The CEO of Banc of California, Steve Sugarman, told me that they’re well capitalized to work with entrepreneurs at each stage of the business cycle. He advised meeting with a banker as early as possible in the process.


Small business owners starting a business may think they can do a lot of the tasks themselves and not realize the importance of outsourcing. Paul Davis and Jim Meyer of the car-sharing company Hubber said they worked closely with vendors who believed in the business model and offered reduced rates or agreed to not charge for a specific period of time. Paul and Jim considered that a form of private financing.

Rodney and Jason Carr of Softline Home Fashions told me that during their first two years they used factoring to fund the import and sale of fabrics.

Factoring provides short-term financing arrangements between companies who advance money to a business based on invoices and accounts.

Plan carefully, talk with a banker, and make arrangements with vendors and suppliers to create the most favorable cash flow scenarios during the start-up phase.



  •  One year later
    How victims have recovered a year after the Boston Marathon bombing
    Watch Video
  • Tax day freebies
    Everyone dreads tax day, but some businesses are offering deals today only
    Tax Day
  • Obamacare savings
    The rollout of Obamacare will cost $104 billion less than previously projected
    Top News
  • Blood Moon
    The first of four 'Blood Moons' came and went; is it the beginning of the end for mankind?
  • Arrest for threatening tweet
    A 14-year-old girl is arrested for issuing a threatening tweet towards American Airlines
    Strange News
  • Pistorius cross examination concludes
    Oscar Pistorius sheds more tears during the trial's final cross examination
    Watch Video

Related Videos:

  • New networking events scheduled for Lehigh Valley business professionals
    <div class="video-info" data-id="517157231" data-param-name="playList" data-provider="5min" data-url=""></div>
  • Lehigh's growing entrepreneurial degree program
    <div class="video-info" data-id="518188571" data-param-name="playList" data-provider="5min" data-url=""></div>
  • "Frozen" dresses sell for as high as $899 on eBay
    <div class="video-info" data-id="518184771" data-param-name="playList" data-provider="5min" data-url=""></div>

User login

Log in
Sign in with your email and password. Or reset your password.
Write for us
Interested in becoming an Examiner and sharing your experience and passion? We're always looking for quality writers. Find out more about and apply today!