Diversification and funding a small business

Asset allocation, risk, diversification and rebalancing. Pros/cons of hiring a financial advisor. Seeking advice on your portfolio?
Post Reply
User avatar
apater
Contributor
Contributor
Posts: 346
Joined: 10 May 2009 18:16
Location: in the shadow of Misti

Diversification and funding a small business

Post by apater »

I am looking into opening a small business but am nervous about diverting money from my retirement savings to fund it. I've looked into other financing methods; bank loans, crowdfunding, etc. One thing I've come across is micro-bonds, which are like crowdfunding, but you have to pay back the money. But I can't find a Canadian micro-bond site.

Anyone know of one? Other alternative methods of funding a business?
User avatar
Koogie
Veteran Contributor
Veteran Contributor
Posts: 3971
Joined: 09 Mar 2012 16:44

Re: Diversification and funding a small business

Post by Koogie »

Angel investors and angel investor networks. Think Dragons Den without that blowhole O'Leary. I have a friend that belongs to one network. They are generally set up and interested in high tech and manufacturing concerns, so not sure what you are into.
User avatar
apater
Contributor
Contributor
Posts: 346
Joined: 10 May 2009 18:16
Location: in the shadow of Misti

Re: Diversification and funding a small business

Post by apater »

Koogie wrote:Angel investors and angel investor networks. Think Dragons Den without that blowhole O'Leary. I have a friend that belongs to one network. They are generally set up and interested in high tech and manufacturing concerns, so not sure what you are into.
A cool restaurant in an under-served market. I'm not looking for millions of dollars, as local costs are quite low.
HardWorker
Veteran Contributor
Veteran Contributor
Posts: 2564
Joined: 31 Dec 2006 10:49
Location: Southern Ontario

Re: Diversification and funding a small business

Post by HardWorker »

apater wrote:A cool restaurant in an under-served market. I'm not looking for millions of dollars, as local costs are quite low.
With restaurants being so risky, with very high failure probability, you'd be hard pressed to get regular financing, let alone anyone giving you money if you have none of your own invested. And unless there's a social cause of some sort, why would you expect crowd funding to work either?
User avatar
apater
Contributor
Contributor
Posts: 346
Joined: 10 May 2009 18:16
Location: in the shadow of Misti

Re: Diversification and funding a small business

Post by apater »

HardWorker wrote:With restaurants being so risky, with very high failure probability, you'd be hard pressed to get regular financing, let alone anyone giving you money if you have none of your own invested. And unless there's a social cause of some sort, why would you expect crowd funding to work either?
I did not think this was the place to spell out my business plan and on why I believe I can succeed in such a competitive environment. Suffice to say that I have experience and have done my homework.

Anyone with a link to some type of micro-bond system for Canadians?
User avatar
apater
Contributor
Contributor
Posts: 346
Joined: 10 May 2009 18:16
Location: in the shadow of Misti

Crowdfunding a small business

Post by apater »

It appears to me that equity (or bond) crowdfunding has some regulatory hurdles still to be resolved. At least I haven't found any sites which have made the leap.

In the meantime, I am testing the waters at US site go4funding, but am unsure how it will all work out.
User avatar
deaddog
Veteran Contributor
Veteran Contributor
Posts: 3422
Joined: 19 Jan 2008 19:59
Location: Central BC/Arizona

Re: Diversification and funding a small business

Post by deaddog »

As an investor I would be very reluctant to fund a business where the principle didn’t have most of his own money already tied up in that business.

If you feel there is too much risk to invest every cent you have why would I take the risk?
"And the days that I keep my gratitude higher than my expectations, well, I have really good days" RW Hubbard
Post Reply