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Volume 1, Issue 10

Picture of Dragon of Alkamae  LAUNCH YOU! 
  ISSN# 1935-0473
  Volume 1, Issue 10
  May 16, 2007

  By Susan L. Reid MS, DMA 
Small Business Start Up Coach & Online Accidental Prenher™

An online newsletter about how to start up and successfully launch small businesses for entrepreneurial women who are ready to transform their lives and make a difference in the world, turn their passion into a profit, and bring in a six figure income.

In This Issue

  • Business Quote from Rev. Billy Graham
  • Show Me the Money:  7 Cash Stashes for Small Business Start-Ups
  • Accidental Pren-her™ Blog Highlights
  • Q & A:  Everything I Need to Know About Business, I Learned from Noah's Ark

This e-Zine is intended to be read in 10 minutes or less, with many of the articles offering links to further information. To ensure we continue to capture the most important issues regarding the successful start up and launch of small businesses, we are keen for our readers to interact with us and let us know what’s on their minds.  Speak up and be heard at:

To subscribe to this e-Zine click here.

To read our blog go to:

Note From Susan

Greetings, Fellow Entrepreneurs!

This e-Zine’s theme is:  start-up money.

Two of my current clients and one of our new e-Zine subscribers, Angie Giffin, asked about what kinds of money are available for start-ups.  I thought this was a great question, so I did the research.  This month’s article tells all. 

Rev. Billy Graham starts us off with the perfect quote to get our perspectives about money in order.  Next up is our main article.  Show Me the Money:  7 Cash Stashes for Small Business Start-Ups will shed light on the main sources of money for small business start-ups.  Read about the difference between equity and debt financing and the seven main money options open to entrepreneurial women today. 

Next, check out some of this week’s blog highlights.  There is a really fascinating video clip that e-Zine reader Muzetta Swann sent in for us to enjoy--thank you, Musashi’s Book of Five Rings re-visited from an Inner Samurai perspective, and a post on my dramatic beginnings as an Accidental Pren-her™.  Lastly, you've got to read Noah's Ark's small business tips.

Happy reading!

Business Quote Of The Week

If a person gets his attitude toward money straight, it will help straighten out almost every other area in his life.

- Rev. Billy Graham

For more business start up quotes go to:

Featured Article

Show Me the Money: 
7 Cash Stashes for Small Business Start-Ups

As a small business start-up coach, I get asked a lot of questions.  The most frequent one:  Where do I get start-up cash?

I’m always glad when my clients ask me this question. Their readiness to take financial responsibility for their business is a sure sign that they’re serious about starting it. 

Not All Money Is the Same

There are two types of start-up financing: debt and equity.  Consider what type is right for you.

Debt Financing is the use of borrowed money to finance a business.  Any money you borrow is considered debt financing.  

Sources of debt financing loans are many and varied:  banks, savings and loans, credit unions, commercial finance companies, and the U.S. Small Business Administration (SBA) are the most common.  Loans from family and friends are also considered debt financing, even when there is no interest attached. 

Debt financing loans are relatively small and short in term and are awarded based on your guarantee of repayment from your personal assets and equity.  Debt financing is often the financial strategy of choice for the start-up stage of businesses.

Equity financing is any form of financing that is based on the equity of your business.  In this type of financing, the financial institution provides money in return for a share of your business's profits.  This essentially means that you will be selling a portion of your company in order to receive funds.

Venture capitalist firms, business angels, and other professional equity funding firms are the standard sources for equity financing.  Handled correctly, loans from friends and family could be considered a source of non-professional equity funding. 

Equity financing is usually a larger, longer-term investment than debt financing and often involves stock options.  Because of this, equity financing is more often considered in the growth stage of businesses.   

7 Main Sources of Funding for Small Business Start-ups

1.  You

Investors are more willing to invest in your start-up when they see that you have put your own money on the line.  So the first place to look for money when starting up a business is your own pocket.  

Personal Assets

According to the SBA, 57% of entrepreneurs dip into personal or family savings to pay for their company's launch.  If you decide to use your own money, don’t use it all.  This will protect you from eating Ramen noodles for the rest of your life, give you great experience in borrowing money, and build your business credit. 

A Job

There’s no reason why you can’t get an outside job to fund your start-up.  In fact, most people do.  This will ensure that there will never be a time when you are without money coming in and will help take most of the stress and risk out of starting up.     

Credit Cards

If you are going to use plastic, shop around for the lowest interest rate available.

2.  Friends and Family

Money from friends and family is the most common source of non-professional funding for small business start-ups.  Here, the biggest advantage is the same as the biggest disadvantage: You know these people.  Unspoken needs and attachments to outcome may cause stress that would warrant steering away from this type of funding.

3.  Angel Investors

An angel investor is someone who invests in a business venture, providing capital for start-up or expansion.  Angels are affluent individuals, often entrepreneurs themselves, who make high-risk investments with new companies for the hope of high rates of return on their money.  They are often the first investors in a company, adding value through their contacts and expertise.  Unlike venture capitalists, angels typically do not pool money in a professionally-managed fund.  Rather, angel investors often organize themselves in angel networks or angel groups to share research and pool investment capital.

4.  Business Partners

There are two kinds of partners to consider for your business:  silent and working.  A silent partner is someone who contributes capital for a portion of the business, yet is generally not involved in the operation of the business.  A working partner is someone who contributes not only capital for a portion of the business but also skills and labor in day-to-day operations.   

5.  Commercial Loans

If you are launching a new business, chances are good that there will be a commercial bank loan somewhere in your future.  However, most commercial loans go to small businesses that are already showing a profitable track record.  Banks finance 12% of all small business start-ups, according to a recent SBA study.  Banks consider financing individuals with a solid credit history, related entrepreneurial experience, and collateral (real estate and equipment).  Banks require a formal business plan.  They also take into consideration whether you are investing your own money in your start-up before giving you a loan.

6.  Seed Funding Firms

Seed funding firms, also called incubators, are designed to encourage entrepreneurship and nurture business ideas or new technologies to help them become attractive to venture capitalists.  An incubator typically provides physical space and some or all of these services: meeting areas, office space, equipment, secretarial services, accounting services, research libraries, legal services, and technical services.  Incubators involve a mix of advice, service and support to help new businesses develop and grow. 

7.  Venture Capital Funds

Venture capital is a type of private equity funding typically provided to new growth businesses by professional, institutionally backed outside investors.  Venture capitalist firms are actual companies. However, they invest other people's money and much larger amounts of it (several million dollars) than seed funding firms.  This type of equity investment usually is best suited for rapidly growing companies that require a lot of capital or start-up companies with a strong business plan.   


Start-ups often take more time and money than budding entrepreneurs are prepared to handle.  Still, with the right source of cash, there is no reason that you need to live off Ramen noodles in order to get your start-up running.  

Accidental Pren-her™  Blog Highlights

You can find our new blog, at:

In the Accidental Pren-her™ blog, I write about the process of turning entrepreneurial women into successful small business owners.  It’s a great place to come and build community while embracing your inner Samurai. 

Each week, I will post four different segments with the entrepreneurial woman in mind.  They are:

  • Monday--interviews and stories about Accidental Pren-hers
  • Tuesday--alchemic wisdom from the inner Samurai
  • Wednesday--reflections on the pren-her life
  • Thursday--a book review from the inner Samurai bookshelf and pren-her reading room

Here are the articles I've added to the blog in the last couple of weeks. Just click through on the link to reach each post.

Artistry and Mastery - This video is a perfect example of a person who has taken something he does very well and added artistry and mastery.

Cultivating Our Inner Samurai, Part 4 - Read about Musashi's sixth rule--"Develop intuitive judgment and understanding for everything," from his Book of Five Rings.

Are You My Mother? - If you have just recently become an accidental pren-her, or are just beginning to think about becoming a small business owner, then I know you can relate to that lost, alone, confused baby bird. I know I could when I first started out.

My Accidental Pren-her Beginnings - Curious about how I came about becoming a small business owner?  Read here. 

Blogging Liberates the Inner Samurai - Read about what blogging can do for you!

If you'd like to receive email notification whenever I add a post to my blog, enter your email into the upper left hand corner of the blog. After you click on the confirmation email from Feedblitz, you'll be all set!

You can find our new blog, at: 

Weigh in.  Make a comment.  Let us know what you think!

Ask The Accidental Prenher™

Everything I Need to Know About Business, I Learned from Noah's Ark

  • Don't hang around so long on shore that you miss the boat.
  • Plan ahead. It wasn't raining yet when Noah built the Ark.
  • Stay fit, even if you’re 600 years old.
  • Don't listen to critics; get on with the job that needs to be done.
  • Build your future on high ground.
  • Speed isn't always an advantage--the snails were on board with the cheetahs.
  • When you're stressed, float a while.
  • Remember, the Ark was built by amateurs--the Titanic, by professionals.
  • No matter the storm, there's always a rainbow waiting.

Disclaimer:  I am neither an attorney nor an accountant and am not qualified to give you financial or legal advice.  If you are starting up a business, it is important for you to contact qualified law and tax experts and seek their advice.

Do you have a burning “how to” question about starting up or launching your small business?  Email me at, and I’ll answer it either in upcoming LAUNCH YOU! e-Zines or in my new Alkamae blog at:

Picture of Susan L. Reid

That’s all for this issue, folks.

Until next time, happy launching!

Susan's Signature

Susan L. Reid, MS, DMA
Small Business Start Up Coach & Online Accidental Prenher™

At Alkamae we specialize, not generalize, by launching successful small businesses one woman at a time.

p.s. Below are the “Hot Links” to our most frequented and requested sites:

Small Business Start Up Coaching for those who are ready to partner with a small business coach and position your new business for success:

Link to our Ready to Launch Power Pack Combo that includes our free e-book Are You Ready to Jump the Corporate Ship?  Here’s How to Know!  This free e-book and accompanying audio will lead you, step-by-step, through the process of deciding whether you are ready to jump the corporate ship and embark on the magnificent journey that will lead you to set-sail on your very own entrepreneurial ship.

Recommended reading for successful small business start ups:

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LAUNCH YOU! ISSN# 1935-0473
Copyright ©2007 by Susan L. Reid, MS, DMA.  All Rights Reserved.
Alkamae | PO Box 246 | Penn Laird, VA 22846 USA | (540) 289-7206 ET

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Susan L. Reid, DMA
Intuitive Small Business Solutions
P.O. Box 246
Penn Laird, VA 22846
(540) 289-7206
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