Business Notes Funding Your Dream with Your Assets

Funding your business is what keeps your entrepreneurial dream alive. Many of us have launched an incredible idea, service, or product with nothing more than our personal savings that I refer to as "Milk Money". For those of you who have never heard the term, milk money refers to the small amount children were given by their parents to buy milk for lunch at school.

According to the Small Business Administration, about 33% of small businesses fail in the first two years, around 50% go belly up after five years, and roughly 33% make it to 10 years or longer. Although there are several reasons for businesses failing, the most common reason is a lack of capital or funding.

A founder of a start-up or small business is responsible for designing an effective funding strategy to ensure their venture is secure. This strategy is a multifaceted approach with a portfolio of techniques. One technique to add to your strategy portfolio is to leverage your assets.

Assets are often used as a measuring stick for the value of a company.

Doyouhaveassets?

An asset is a resource with economic value that an individual/company owns or controls with the expectation that it will provide a future benefit. The idea, it is something that, in the future, can generate cash flow, reduce expenses, or improve sales.

WhatAreExamplesofAssets?

According to Investopedia, personal assets can include a home, land, financial securities, jewelry, artwork, gold and silver, or your checking account. Business assets can include such things as motor vehicles, buildings, machinery, equipment, cash, and accounts receivable. A very important class of assets include things like intellectual property (e.g., patents or trademarks), contractual obligations, royalties, and goodwill.

Learn more about the various types of assets and how they might support your business funding.