 |
 |
|
How to Use Other People's Money for Your
Business
"Money is a terrible master but an excellent servant." - P.T. Barnum
John Ray, the famous 17th century author, was known to have written the
aphorism, "Money begets money." In the business world, I'm sure you've
also heard the saying, "You've got to have money to make money."
There are countless sources of cash, but by far, the best one to utilize
for your business is ... other people's money.
Perhaps one of the greatest "secrets" of the richest people in the world
is summed up in those 3 words: Other People's Money - OPM for short. If
you took a cross-section of the most affluent business people, you'll
find that the majority of them launched their fortunes using OPM. In the
next few minutes, I will show you how you can obtain other people's
money for your business. What you do with the money, however, is up to
you - but if I were you, I'd take P.T. Barnum's advice, and make money
your servant so that you, too, you can make your own fortune.
The use of other people's money has become such an ethical and
acceptable mainstay in business because one can leverage other people's
money to your benefit.
For example, you can leverage borrowed money into high-yield investment
programs that could generate a return that would then pay back your
lender and line your pockets as well. Or you can leverage borrowed money
into asset-producing or income-generating real property. Or you can
simply borrow money to start or grow your business.
The benefits to using OPM are obvious: 1) When you use other people's
money, especially within the parameters of a corporation, your debt is
assigned to your business, and your debtors can make no claims against
your personal finances; and 2) the infusion of cash allows you to have
money to make money for your business.
Of course, even with the proliferation of lending institutions and
venture capitalists, it is often difficult to obtain other people's
money.
Well, since Wall Street Journal has kindly called me a man who "finds
answers in unlikely places," I'm going to reveal an unlikely place where
you can obtain other people's money. This one is available to all, and
yet very few ever take advantage of it. It's the federal government.
I've coined a phrase for this source of money: I call it "other
taxpayers' money" - OTM for short. The federal government has millions
of dollars of taxpayers' money allocated to funding businesses like
yours.
Here are a few great sources of OTM:
1) If you want to get training and/or money to start your own business,
millions of dollars are available at www.sba.com. They'll also show you
how to find alternative sources of financing, how to protect your
invention, how to sell your idea, how to license your product, how to
write legal contracts, how to sell overseas, and how to buy business
equipment.
2) If you want money to export and sell products to foreign countries,
you can obtain it from the Export-Import Bank of the United States at
www.exim.gov. Or you can go to The Overseas Private Investment
Corporation (OPIC) at www.opic.gov.
3) If you want to obtain government contracts, then access the
Procurement Assistance Offices online. Here, you'll learn how to draw up
a business plan that'll get your business noticed. They can match the
product or service you're selling with the appropriate agency, and then
help you market to them more effectively. You can find these programs at
www.dla.mil.
4) If you need venture capital for a new or existing business, then you
need to go online and access the Small Business Investment Company (SBIC).
These are privately-organized and privately-managed investment firms
that are licensed by the Small Business Administration (SBA). With their
own capital and with funds borrowed at favorable rates through the
federal government, SBICs provide venture capital to small independent
businesses, both new and established. You can access them at www.sba.gov/INV.
5) If you need free help or want to learn how to do your own personal or
business taxes? All you have to do is access www.irs.ustreas.gov/prod/bus_info-bus_help.html.
You can also obtain a free 26-page book on the Internet called The
Credit Process: A Guide for Small Business Owners. It's written for
small business owners seeking financing for the first time. It covers
sources and types of financing; funding resources; preparation of a
business plan; preparation of loan applications; and action to take if a
loan is denied. It also contains an especially useful and comprehensive
glossary of finance terms, agencies, and fair lending regulations.
|
