The following is excerpted from “Target Funding: A Proven System to Get the Money and Resources You Need to Start or Grow Your Business,” pg. 26 to 28 (McGraw-Hill, July 12, 2019).
If the vast majority of early-stage entrepreneurs, small businesses, and independent inventors can’t get conventional business loans or venture capital, where do they find the funds to start up, scale up, or shore up their businesses?
According to the latest surveys of the U.S. Small Business Association (SBA) and the National Small Business Association (NSBA), 82 to 85 percent of startup funds and 45 to 48 percent of expansion or stabilization funds come from the respective business owners and their family and friends. More than three-quarters (77 percent) of initial and early-stage funding comes from the owner’s (or inventor’s) personal savings, with the remainder coming primarily from personal credit cards, home equity loans, and selling personal assets.