Critical Miss: Issue 2 [Rules For Owning A Business]

Rules For Owning A Business

Financing your Business

1. Personal Savings: You are expected to put most of your free cash into a new business.

2. Gifts and Loans from friends and relatives: If you have to pay this back, there will usually be no interest rates - it is a simple loan with no legal strings.

2. Contributions from partners: Usually from their personal savings.

3. Loan from Bank or Credit union: Most of the time, a necessary evil.

5. Government assistance: Often comes in the form of tax breaks.

6. Venture capital: Loans from independent investors, usually at higher rates than from Banks.

Getting a Loan

Most banks and credit unions will typically require you to have 10 % of the needed start up capital. Then the bank will lend you the rest. You will of course have to pay off the loan with interest. Independent investors may not require as much of a down payment, but they will charge higher interest rates.

For details of interest rates see the article "Things You Can't Afford" , also by MJM, in this issue of Critical Miss.

How can you handle a business in a game?

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