Assets

So far, we’ve mentioned creative ways to use asset financing:

• Get a part-time job and save up your wages
• Start another business first, just to raise start-up money for your larger goals
• Sell things you don’t want any more in a yard sale or on eBay

Selling things you own to raise cash is known as “liquidating” assets. But you may have some assets that are already “liquid.” What about that birthday and Christmas money you have been stashing in your savings account or piggy bank? It is very common for entrepreneurs to use personal savings to start a business. The potential profit you can make on a business venture is probably ten times the tiny bit of interest you earn on that savings account. If your business is successful, you’ll have much more money to save and invest in the future!

At the end of this lesson, Activity 7 will help you take inventory of all your possible assets that could be used to raise capital for a business. You may be very surprised to discover you have a lot more assets — both tangible and intangible — than you ever dreamed. You can use these assets to realize your dreams of owning a business.