"How to Use Other People's Money for Your Business"
By Mathew Lesko
"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:
- 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
- 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:
- 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.
- 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.
- 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.
- 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.
- 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.
Matthew
Lesko is a New York times syndicated columnist, and author
of 2 New York Times best-sellers. He is regularly featured as
the nation’s top expert on government information
on TV programs such as Larry King, Oprah, David Letterman,
Jay Leno, the Today Show and Good Morning America. His latest
book, "Free
Money for Entrepreneurs on the Internet" identifies hundreds
of little-known sources of free government money for "net-repreneurs"
and reveals the secret formula for easily obtaining the money
for your business.
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